Funding has been secured from the Merseyside Pension Fund Catalyst Fund to support the next phases of the development of a heat network at Liverpool Waters, taking the total Catalyst facility to £20 million. The heat network is Liverpool’s most significant regeneration project having been recently awarded central government grant funding from the Heat Networks Investment Project.
The heat network, which will be delivered by Peel NRE, part of Peel L&P, will be an integral component to Peel L&P’s Liverpool Waters regeneration project. Peel NRE has established a dedicated energy supply company called Mersey Heat which will build, own and operate the heat network. Once complete, the first phase will provide up to 19 gigawatt hours of heat energy per annum to consumers at Liverpool Waters and the greater waterfront area. The funding has already facilitated the development of initial underground pipes to transfer heat energy at the Prince’s and Central Docks, and northern areas of Liverpool Waters. The continued support will establish a permanent energy centre at Great Howard Street and further phases of underground pipes connecting the heat network to developments in Liverpool Waters such as the Titanic Hotel. The network is expected to save around 4,200 tonnes of carbon per year.
The funding marks the third investment backed by the Penson Fund’s Catalyst vehicle since its establishment in 2017 and meets the ‘Catalyst’ criteria of promoting projects that support the economy in the Liverpool City Region.
Jonathan Burley, Peel NRE’s Commercial Director said: “We are very pleased the Mersey Heat project is being financially supported by the local Merseyside Catalyst Fund. Their involvement highlights the importance the Liverpool city region is placing on addressing low-carbon energy generation and its willingness to innovate.”
Burley added: “So far, the UK has made great progress in de-carbonising the electricity sector but more needs to be done on heating and transport emissions. This is the next phase of a ten-year project, which we hope will eventually supply around 9,000 homes and numerous businesses along Liverpool’s waterfront. The scheme clearly demonstrates Peel L&P’s intent to play a significant part in tackling carbon dioxide emissions from heating, by providing a cost effective and attractive low carbon offering to residents and businesses.”
Herbin Duffield, Director, Investment Advisory, CBRE Capital Advisors commented: “We are very happy to be involved in arranging this loan facility on behalf of the Merseyside Pension Fund to one of the region’s most established developers. The continued support will accelerate the delivery of an important regeneration project in the City region as well as facilitate low carbon heat and energy in keeping with the UK government’s Clean Growth Strategy.”
Peter Wallach, Director of Pensions at Merseyside Pension Fund, commented: “Catalyst Fund represents MPF’s commitment to local development and regeneration, making a positive impact on the communities its stakeholders live, work and retire into while seeking commercial return for its members. We are pleased to have made our third Catalyst Fund investment which will provide cost-effective heat and power solutions to up to 9000 homes and 4 million sq ft of commercial space with cleaner CHP technology as part of the UK’s drive to reduce carbon emissions. This project will contribute towards the UK Government’s CO2 targets by delivering low carbon heat and power and make Liverpool a greener place to live, work and visit. We look forward to the potential of making similar investments in the future.”