The Merseyside Pension Fund has backed Peel Energy’s plans for a district heat network to support the delivery of the wider £5bn Liverpool Waters site.
Peel first set out plans for the heat network in July last year and has now secured the funding from the pension fund’s catalyst vehicle, its third investment since its establishment in 2017.
The funding will help Peel to develop two temporary energy centres, as well as underground pipes to transfer heat energy at Princes and Central Docks, along with the northern areas of Liverpool Waters.
The heat network, to be operated by a dedicated energy supply company operated by Peel, will support space heating and hot water provision within Liverpool Waters’ buildings.
Peel will be responsible for system design, construction of the generation plant and operation of the network, which is to provide low cost, low carbon reliable heat to the building owners and occupiers.
Completion is expected in 2023. CBRE Capital Advisors acted for the Merseyside Pension Fund.
The Liverpool Waters heat network is the second to come forward in the city; earlier this year, Liverpool City Council backed a similar network at Paddington Village, to be delivered by provider Vital Energi.
Joe Bahsoon, dirrector of investment advisory, CBRE Capital Advisors said: “The loan provides greater diversity to the existing investments made by the fund and represents the opportunity to 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.”
Cllr Pat Cleary, chair of Merseyside Pension Fund, added: “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 solution to up to 9,000 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 Governmen’s C02 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.”