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London Energy Efficiency Fund invests £65 million for a greener capital

23 February 2016

Amber Green (“Amber”), the manager of the London Energy Efficiency Fund (“LEEF”) and a division of specialist infrastructure fund manager Amber Infrastructure Limited, has successfully invested over £65 million of public funds to improve energy efficiency in over 76 public and private buildings across 9 London boroughs. 

The recent deployment of a £14.5 million loan agreement to finance the installation and operation of an energy efficiency heat network for 15,000 new homes in the Capital’s newest residential district, Greenwich Peninsula, marks the completion of LEEF’s initial funding cycle.

Since 2011, LEEF’s investments have supported 1,600 construction and operational jobs and will reduce CO2 emissions by 35,000 tonnes in London; the equivalent to removing 32,000 cars from the road. 

Owing to Amber’s active approach to infrastructure asset management, LEEF will continue to re-invest recycled capital generated from the returns on initial seed investments maturing over the course of the next investment cycle to August 2018.

LEEF is part of the European Commission’s Joint European Support for Sustainable Investment in City Areas (JESSICA) initiative and has helped pioneer the Mayor of London’s urban regeneration agenda.

The initial LEEF funding round was completed eighteen months ahead of schedule in August 2014, releasing a further £11.5 million from the Mayor’s London Green Fund, all of which has now been invested as part of the £67 million milestone. In total, LEEF’s investments have enabled £470 million of projects throughout London, delivering a 6 times leverage effect from public seed capital.

LEEF’s investment portfolio now includes:

  • £20 million investment to the Tate Foundation for the installation of low-carbon heat and cooling systems across the Tate’s London estate – including Tate Modern, Tate Britain and its local storage facilities – to achieve a 25% annual energy saving and a 45% reduction in Tate Modern’s gas consumption alone;
  • £14.5 million to Greenwich Peninsula ESCo Ltd (GPEL) for the installation of a heat network for over 15,000 homes and 3.5 million ft2 of commercial space in the Greenwich Peninsula, as part of a landmark £8.4 billion regeneration scheme surrounding the O2;
  • £12 million to St. George’s Healthcare NHS Trust Hospital, Tooting to cut the hospital’s energy output by 39% and reduce carbon emissions by 6,000 tonnes per annum, allowing the savings to be invested into medical care, training and research facilities; 
  • £6 million to the London Borough of Enfield for the Lee Valley Heat Network designed to heat and distribute water to over 6,800 homes and businesses, the first ever carbon-capture power facility to be operating in London and the first match-funding of JESSICA funds alongside an EIB loan;
  • £4.7 million to the Salters Livery Company for a series of energy system upgrades which will reduce consumption by 39%;
  • £4.6 million to London Borough of Hackney’s RE:NEW project to support new communal heating networks across ten housing blocks, reducing energy bills by around 56% and securing average savings of £980 for over 1,500 tenants;
  • £3.5 million committed to London Borough of Croydon to fund an authority wide RE:FIT scheme installing energy saving infrastructure to reduce carbon emissions and helping Croydon to reach its 25% reduction target by 2015.

Leo Bedford, Director of LEEF at Amber Green said: “Since 2011, we have seen a huge rise in demand from public and private sector landlords in London to make the residential and commercial real estate they own and manage more energy efficient. 

Amber has worked with a number of public and private sector partners across the Capital to achieve a 30% average reduction in energy consumption across LEEF’s portfolio, dramatically reducing the cost and carbon output in some of London’s most iconic real estate.

We are now actively investing capital re-cycled from these initial investments and as the largest private sector asset manager of ERDF monies, we look forward to partnering with more of London’s larger property owners to develop Amber Green and LEEF’s highly credible track record of maximising investment opportunities for European funding and the Mayor of London’s London Green Fund.” 

For further information:

Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited 

Mitch Barltrop +44 (0)20 3727 1039
FTI Consulting

Notes to Editors:

About the London Energy Efficiency Fund

LEEF is funded through £65m of public investment from the European Regional Development Fund (“ERDF”), the Mayor of London and London Waste and Recycling Board (“LWARB”), and up to £50m from The Royal Bank of Scotland (RBS).  

Since its launch in 2011, LEEF has sourced and completed energy efficiency investments across London, partnering with public bodies, local authorities, charities and NHS Trusts. As a result of completing its first investment round eighteen months ahead of schedule, LEEF has been awarded a further £11.5m of ERDF monies from the Mayor’s London Green Fund; a first for JESSICA funds in the UK.

The fund is managed by the Amber Green Consortium, which comprises the lead sponsor and manager Amber Infrastructure, RBS (as funder) and Arup (as technical advisor).

LEEF is part of the European Union’s Joint European Support for Sustainable Investment in City Areas (JESSICA). Supported by the European Investment Bank, it tackles the public and private sector’s limited access to capital by using commercial expertise and funding to achieve key urban development goals and long-term savings.

About Amber Infrastructure Group

Amber Infrastructure Group (Amber) is a leading international infrastructure specialist, providing asset management and investment advisory services in respect of over £5 billion of assets in the UK, Europe, Australia and North America. Amber’s core business focuses on sourcing, developing, advising on, investing in and managing infrastructure assets within the utilities, PPP, transport, renewable energy and regeneration sectors. 

Amber provides investment advisory services to International Public Partnerships Limited as well as private investment funds, specialising in urban regeneration and energy efficiency. Amber is headquartered in London with offices in Munich, Sydney, Melbourne and San Francisco and employs approximately 80 people, making it one of the largest international infrastructure specialists. 

Amber Green is the specialist brand and team created by Amber Infrastructure Limited to advance Amber’s work in the energy, renewable, regeneration and sustainability arenas.