London energy efficiency fund brings green energy to 15,000 homes in new Greenwich Peninsula
Over 15,000 new homes are set to benefit from the installation and operation of an energy efficiency heat network across London’s newest residential district, Greenwich Peninsula (“the Peninsula”). This network will save over 20,000 tonnes of carbon dioxide per annum, the equivalent to taking 18,000 cars off London’s roads.
The initiative is part of developer Knight Dragon’s landmark £8.4 billion regeneration scheme of over 200 acres of brownfield land surrounding the O2 Arena. In addition to supplying heat to Greenwich’s residential development, the gas-fired Combined Heat & Power (“CHP”) network will help heat over 3.5 million ft2 of commercial space; bringing a sustainable source of energy to both homes and businesses.
The Peninsula’s stakeholders will also work closely with the Greater London Authority (“GLA”) to connect other local schemes to the new heat network, thereby bringing further carbon-efficient heat and electricity as more local homes and businesses connect in the future.
The Peninsula heat network is to be part-financed by a £14.5 million loan from the London Energy Efficiency Fund, operated by Amber Green, which manages capital on behalf of the European Regional Development Fund (“ERDF”) and the GLA.
LEEF’s loan will enable Knight Dragon to direct its equity investment to the core real estate elements of the development and will bring forward the overall project timeframe, further enhancing the efficiency of the scheme both from a regeneration and carbon perspective.
Leo Bedford, Director of LEEF at Amber Green said: “We’ve seen some impressive results in financing energy efficiency projects for some of London’s most iconic public real estate. Greenwich Peninsula is the first private sector deal for LEEF and delivering carbon savings for one of the largest new residential developments in the Capital is a real milestone for the Fund.
As we complete LEEF’s first funding cycle – investing £65 million of public money into 76 buildings across London – we look forward to plugging the funding gap in energy infrastructure for other public and private real estate owners and managers with a portfolio in the city.”
Richard Margree, CEO of Knight Dragon, said: “Knight Dragon is proud to be delivering carbon savings across this significant urban regeneration and to be embracing new partnerships and efficient methods to achieve this.”
For further information:
Erica Sibree +44 (0)20 7939 0558
Amber Fund Management Limited
Mitch Barltrop +44 (0)20 3727 1039
Notes to Editors:
About the London Energy Efficiency Fund
LEEF is funded through £65 million of public investment from the European Regional Development Fund (“ERDF”), the Mayor of London and London Waste and Recycling Board (“LWARB”), and up to £50 million 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 £11.5 million 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 Knight Dragon
Combining scale and expertise, Knight Dragon are committed to delivering a distinctive, sustainable new residential environment at Greenwich Peninsula. Knight Dragon’s previous London development, ‘The Knightsbridge’. Was Property Week’s ‘Residential Development of the Year.' The London-based team worked with Allies and Morrison to put together a new masterplan for the Peninsula that was approved at the end of 2015.
Knight Dragon Development Limited is owned by the Hong Kong Cheng Family. In July 2012 Knight Dragon acquired a 60 percent stake in Greenwich Peninsula Regeneration Limited (GRPL) in a joint venture with Quintain. In November 2013 Knight Dragon purchased the remaining 40 percent share in GRPL renaming the company Knight Dragon Development Limited.
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 £4 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 70 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.