BasePower to Speak at the Innovation & Investment in Energy Summit

George Fowkes, a founding director of BasePower, has been invited to speak at the Innovation & Investment in Energy Summit on Thursday 24 June, a senior-level forum for those changing the face of the global energy sector. Hot on the heels of securing a £50 million investment fund for new sustainable energy projects, George will be talking about how BasePower is scaling up for future growth, in session 2.

As the energy industry accelerates towards a lower carbon future, the Innovation & Investment in Energy Summit will consider what the energy mix is likely to be and discuss how it might be financed. View the full agenda here.

Access to the event is complimentary for the investment community and members of the Frontier Energy Network. BasePower has some complimentary passes available – contact us if you’d like to listen to the discussions.

Automotive Industry First for BasePower’s CHP and Thermal Oil System

BasePower’s innovative development of energy technologies has achieved an industry first for Tier 1 automotive industry supplier.  A Combined Heat and Power (CHP) scheme providing heat in the form of hot water and thermal oil has been successfully commissioned at the production site in the West Midlands.

Power generated from the CHP energy centre is supplied to the factory, offsetting the power imported from the National  Grid and helping to deliver lower energy bills. Heat from the CHP is supplied to the site’s production processes including Air Handling Units, Ovens and Presses, maintaining them to the required temperature tolerances.

Prior to switch on of the CHP scheme in January 2021, BasePower developed an innovative solution to integrate the waste heat from the CHP with the site’s thermal oil system. Thermal oil heats the presses to the high temperatures required for the site’s injection moulding processes. To date the site has used gas-fired boilers to provide heat to the thermal oil circuit. The CHP heat is now the primary heat source for the system, with the existing boilers used as backup.

Robin Hardy, Projects Director at BasePower said:
“This project demonstrates how CHP can lower energy bills and be a platform for integration with other hybrid technologies.” 

SDCL Energy Efficiency Income Trust plc (SEEIT) signs framework agreement to fund up to £50 million of BasePower projects

BasePower announces that it has signed a framework investment agreement with SDCL Energy Efficiency Income Trust plc (SEEIT) to fund up to £50 million of projects over the next five years.  The agreement will allow BasePower to accelerate delivery of sustainable energy projects for British industry.

BasePower is a growing developer and operator of energy efficiency projects for premier industry brands in the automotive, food manufacturing and logistics sectors. The company recently switched on its eighth energy centre in the UK. Projects span the full gamut of Combined Heat and Power (CHP), solar photovoltaic (PV), resilience and grid upgrades in a wide range of sizes to suit the specific needs of each site.

SDCL Energy Efficiency Income Trust plc (SEEIT) is an experienced investor in sustainable energy and is listed on the London Stock Exchange. The framework agreement will involve SEEIT investing  approximately £10 million per annum over the next 5 years to build out BasePower’s project pipeline. BasePower will manage the development, construction and operation of over 35 MW of new energy efficiency assets. These are likely to include further CHP, efficiency and microgrid projects supporting UK industry as it moves to decarbonised energy. 

Dan Poulson, a founder director of BasePower, said:
“We are delighted to have begun this partnership with SEEIT. Our ability to draw on a facility to finance projects of all technologies remains very popular; it leaves customers free to deploy scarce capital into their core business. We’ve known and respected the SDCL team for some years and we have a shared vision to decarbonise industry economically. This new agreement allows us to expand and broaden our offer to customers. As our work continues to accelerate, this represents a real vote of confidence for the future.” 

ENDS

About SEEIT

SDCL Energy Efficiency Income Trust plc is the first UK listed company of its kind to invest exclusively in the energy efficiency sector. Its projects are primarily located in the UK, Europe and North America and include, inter alia, a portfolio of cogeneration assets in Spain, a portfolio of recycled energy and cogeneration projects in the United States, a regulated gas distribution network in Sweden and, most recently, a portfolio of commercial and industrial solar and storage projects in the United States.

The Company aims to deliver shareholders value through its investment in a diversified portfolio of energy efficiency projects which are driven by the opportunity to deliver lower cost, cleaner and more reliable energy solutions to end users of energy.

Past performance cannot be relied on as a guide to future performance.

Further information can be found on the Company's website at www.seeitplc.com.

Investment Manager

SEEIT's investment manager is SDCL, an investment firm established in 2007, with a proven track record of investment in energy efficiency and decentralised generation projects in the UK, Continental Europe, North America and Asia.

SDCL is headquartered in London and also operates worldwide from offices in New York, Dublin, Madrid, Hong Kong and Singapore. SDCL is authorised and regulated in the UK by the Financial Conduct Authority.

Further information can be found at www.sdclgroup.com.

Is gas-fired CHP future-proof?

Renewable energy is providing an increasing proportion of the UK’s electricity needs, but grid supplied electricity continues to increase in cost. For industrial processes that use heat, the exact fuels and technologies which will reach ‘net-zero‘ are unclear. What steps can you take to stay competitive now and still set a path to net-zero? We discuss how gas-fired Combined Heat and Power (CHP) fits into the decarbonisation journey.  

 It’s important to remember that CHP power displaces what is known as the marginal generation technology. At present that is either coal, open or combined-cycle gas turbine generation (CCGT). And CCGT is set to remain the marginal generation technology well into the 2030s. A well-configured CHP project is more carbon efficient than any open-cycle thermal generation technology. This principle is at the heard of BEIS’s carbon calculations[1] and the Climate Change Agreement calculation methodology for CHP[2]. So it’s official; good quality gas-fired CHP projects save carbon now and in the future, whereas buying ‘green’ electricity from the grid does not[3].

But more than that, an energy centre with CHP at the heart prepares you for tomorrow, because the grid equipment and heat network installed alongside it allow new technologies to be connected as they become economically viable. The new equipment doesn’t have to bear the full costs of adoption. So it is less risky to put in, and has better payback.

This applies to power tech such as renewables, battery storage and standby generation. It also works for heat, adding additional loads to the heat network and swapping out boilers for heat pumps and steam generators. Being able to evaluate, then manage the install and operation of these technologies is a key organisational skill for the future.

Further into the future, CHP engines installed today can already use significant proportions of hydrogen in their fuel. With the CHP’s heat network always maximising primary energy efficiency, this expensive fuel will be put to its best use. And the network will still be there to eke out fuel economy when the CHP engine is eventually swapped out for a fuel cell or other emerging technology. 

So although buying green electricity for a site looks like a quick win today, it’s the heat and power network funded by a CHP scheme that gives industrial energy users the best skills and options for decarbonisation into the future.

To find out how BasePower can help your business prepare for decarbonisation, contact us today.

Sources:

1. Valuation of Energy Use and Greenhouse Gas, BEIS 2019

2. Climate Change Agreements Operations Manual, Environment Agency 2018

3. Valuation of Energy Use and Greenhouse Gas - see section 3.39 in particular

BasePower receives £800,000 boost from Midlands Engine Investment Fund

Thanks to an investment boost from Maven Capital Partners, BasePower is able to continue its support for British manufacturing as it transitions to sustainable energy.

An £800,000 loan from the Midlands Engine Investment Fund (MEIF) Debt Finance, managed by Maven Capital Partners, has been granted to Hams Hall Sustainable Energy Ltd (“HHSE”), part of a group of companies that have been set up by BasePower.

The funding will be used to support the delivery of new BasePower contracts, including the purchase of a CHP engine for a leading Tier 1 supplier to the global automotive industry based in the Midlands. CHP technology captures the heat formed during power generation. It is then put to productive use during the manufacturing process, resulting in reduced energy costs and carbon emissions.

Dan Poulson, Founding Director said: `
“It is great to receive the backing and support of MEIF and Maven. The funding will enable us to provide our key clients with substantial savings on energy that would otherwise have been supplied from the electrical and gas grids and helps support the UK’s transition to a low-carbon economy.”

Basepower is led by a strong management team which has previously developed more than 30 energy generating schemes for a range of clients in the public and private sectors.

Read release in full.

Investing in Energy Projects: How to Solve the CAPEX Dilemma

As a result of the economic downturn caused by COVID-19, many significant CAPEX projects have been delayed or cancelled. Most businesses have strict return on investment criteria, meaning energy projects often lose out to quicker revenue generating projects.  

However, UK manufacturers who are spending upwards of £1million a year on energy are benefiting from a radical change in the way they procure and receive energy. Rather than just being billed for what is used from the grid, on-site energy schemes, such as BasePower’s projects in the food & drink and automotive sectors, allow manufacturers to implement a fully-financed energy centre without upfront investment or risk. They also significantly reduce energy costs and carbon emissions.

 A BasePower-funded energy centre will deliver savings in the region of 15% on the grid cost of energy supplied. A fully-containerised energy centre can be designed, procured, built and switched on in around 12 months, with no interruption to business operations. You are then charged at a fixed percentage discount (“% Saving”) to what you pay for your grid cost of energy. Energy costs fall as soon as the scheme is switched on and the operational savings can be immediately realised by the business.

Due to the recent changes in the energy market, BasePower has recently added a new contract option to its successful “% Saving” product. In the new arrangement, termed “Heat and Power Purchase”, the customer and BasePower collaborate to purchase gas for the CHP at the most favourable rate. The customer pays for the gas fuel plus a low generation fee, in addition paying for CHP heat distribution at a fixed % discount to grid prices. This works particularly well in the current high spark spread environment and protects against rising carbon taxes on fuel, providing further opportunity for savings.

If CAPEX is still available and you wish to fund your own energy centre, BasePower can de-risk by developing, constructing and operating the energy centre on an EPC (Energy Performance Contract) basis. A well-configured energy centre should be able to pay back in under four years. This option is also proving popular.

All BasePower designed schemes achieve Good Quality CHP (CHPQA), meaning that Climate Change Levy (CCL) is not payable on CHP fuel or outputs, while the carbon reductions from CHP also contribute to customers’ Climate Change Agreements (CCA). These are additional fiscal benefits.

 Getting the right energy scheme in place will have a clear impact on the subsequent energy and carbon savings that you can expect. If you would like to review the potential for installing an on-site power generation scheme and see the various funding options available, please contact BasePower for an initial discussion.

Site Operations Managers Required

BasePower is an award-winning company with an innovative business model enabling large manufacturers to make a step-change reduction in their energy costs and carbon emissions. We are currently recruiting for two part-time Site Operations Managers at new Combined Heat and Power (CHP) Energy Centres. The first role will be at a large food production site in the Dorset area.  The second Site Operations Manager will cover two sites; a Tier 1 automotive manufacturing site in north Cheshire and a cheese manufacturer in mid-Cheshire. 

The Site Operations Manager will take a proactive approach in the dally operation and management of the CHP Energy Centre including:

• Working with the UK Operations Manager to manage the performance of the CHP scheme on a day to-day basis and deliver against expected outputs

• Maintaining Site Operations Diaries and Required Actions Items List (RAIL), assisting  with site specific SOPs and resolving any issues arising, including liaison with OEMs when trips occur

• Undertaking inspections within the CHP compound and other factory assets such as the Waste Heat Boiler room, Control Room and Hot Water Transfer area to identify any issues.

• Maintaining inspection and compliance records

• Be the first line of defence to undertake minor repairs and maintenance, or managing key suppliers and contractors

• Ensuring that the plant is operated and maintained in line with the Operational and Maintenance (O&M) Manuals

• Managing and controlling the work activities on-site and maintaining excellent relationships with the customer and site personnel. 

The successful candidate should have an Electrical/Mechanical background. Boiler, reciprocating or rotating engine and rotating equipment experience is preferred. The successful applicant should live within commuting distance of the post which is being applied for (Dorset or mid-Cheshire) and will be the primary point of contact.

For more information and a full job description please contact david@basepower.com

Top Tips: Why Generating On-site Energy Makes Sense Following Covid-19

At the beginning of the year manufacturers were planning for the supply chain and labour challenges that might arise from Brexit. Fast forward three months, and this was eclipsed by the Covid-19 crisis. UK manufacturing now needs to weather the onset of a sharp, expected recession.  In this article we look at why generating your own on-site energy can help you to stay competitive and on top of changing regulations.

 1. Are you paying too much for your energy?  

The Covid-19 pandemic has caused dramatic changes in financial markets and lowering demand for commodities. This has resulted in the wholesale cost of natural gas falling to historic lows. For example, the day ahead price 12 months ago was around £12.63 /MWh whereas this week it reduced to £6.94/MWh. Yet, despite historic low gas and power prices, this is not necessarily passing through to actual invoices. Your electricity supply bill (and the electricity you use through the meter) is made up of several different costs. Only about 50-40% of the cost is the wholesale power price. The rest is made up of network and distribution costs and goes towards funding the Government’s renewable generation schemes. These costs are forecast to continue rising as UK energy evolves into a net-zero system.

 Manufacturers who generate their own energy requirements via an on-site Energy Centre (behind the meter) can avoid these costs. Combined Heat & Power (CHP) produces power and heat more cheaply than taking power through the meter and offers the added advantages of increased resilience and flexibility for the host site.

2. Fix your costs now to avoid increases later

 New regulation in the form of the Targeted Charging Review (TCR), will change the way that variable costs are applied to electricity supply bills. Charges that were once based on a time of use tariff (such as red band DUoS period between 4pm-7pm being more expensive or even the winter TRIAD charge), will instead be charged as a fixed flat rate, depending on your agreed capacity. This will affect the savings from load management, energy efficiency and on-site generation.

 TCR has now been delayed until 2022. As a result, fixing costs via a CHP scheme will guarantee a holiday of even cheaper heat and power before TCR begins. As BasePower fully-finances its energy projects, customers can expect a major share of energy savings which will go straight to the bottom line, without any requirement for capital expenditure. 

3. Re-use the heat for greater efficiencies. 

 The traditional process of sourcing power from the grid and heat from a boiler is around 50% efficient. CHP projects can increase overall efficiency to 80-90% with good heat use. This makes CHP particularly suitable for manufacturing processes that use a lot of heat. The heat byproduct from generation is captured and used around the factory for various processes. This efficient use of heat and power generation reduces the site’s overall energy costs. As much as 15% savings on annual energy spend can be achieved from a fully-funded BasePower project.

4. Integrate energy use with sustainability goals

 A well-engineered CHP project that recovers as much heat as possible reduces carbon emissions. This is good news for manufacturers who are looking to generate energy more sustainably.

 BasePower has helped automotive and food manufacturers to avoid the release of over 6 million kg of CO2 to the atmosphere since 2017. CHP projects also contribute to meeting Climate Change Agreements, whilst remaining competitive.

5. Get ready for net-zero

The Government has made a net-zero pledge by 2050. However, the exact fuels and technologies which will be used to achieve this ambitious goal is unclear. There will be a greater need for flexibility as carbon costs become material. CHP has the potential to use renewable fuels and can follow the decarbonising of the gas grid via utilising hydrogen and syngas.  

 With many lobbying groups calling on the Government to use the post COVID-19 rebuild to put a greener economy at the heart of policy-making, changes can be expected. Generating energy on-site through a CHP Energy Centre means you can reduce your costs now, stay competitive and remain fully flexible for whatever energy policy changes might lay ahead. By having an asset on-site like a CHP, you can be flexible in your demand and help your site and the UK along the path to net-zero.

 To find out how BasePower can help your business reduce energy spend and carbon emissions, contact us today.

BasePower Boosts Business Development and Operations

BasePower has made a number of new appointments to the team as the company expands its roll out of energy centres across the UK.

Ross Winkworth, formerly of E.ON and RWE npower,  joins the company as Head of Business Development. He is an energy sales professional who will use his 14 years’ experience in the food and drink industry to help manufacturers understand their energy use and achieve their objectives of reducing cost and carbon emissions.

BasePower has also boosted its construction and operations teams as a result of new energy capacity being installed into manufacturing sites in the food, drink and automotive sectors.

Tomasz Jankowski joins BasePower as Project Manager. He is a qualified engineer who spent nine years working at E.ON in positions including Project Delivery Manager and Hvac Engineer. Miles Goor, who takes up the role of Project Engineer, completes the new line up. He is a mechanical engineer with project design and implementation experience gained in multiple roles in South Africa and the UK.  

Tomasz and Miles will work closely with BasePower’s existing team to ensure the successful development, procurement, construction and operation of world-class energy centres.

BasePower Expands Engineering and Operations Team

Following the award of multiple Combined Heat and Power (CHP) contract wins, BasePower has appointed two highly experienced engineers to join its expanding team.

Serah Adegbenro is a Chartered Engineer with a 1st Class Master’s degree in Chemical Engineering. She has over a decade of experience in the food and pharmaceutical industries and comes to BasePower from the energy sector.  As Project Engineer, she is responsible for the growing portfolio of BasePower CHP energy centres across the UK, managing the construction process from design through to commissioning and full output.

Serah’s career includes eight years at Tate & Lyle where she was involved in the start-up and commissioning of a new cane sugar refinery in Egypt, was Technical Manager at a Liquid Sugar Plant in Israel, and managed engineering projects at Tate and Lyle sites within the UK. She was also a core part of a multi-million pound capacity expansion project at GlaxoSmithKline working on the manufacture of an Active Pharmaceutical Ingredient.

Cornerstoning BasePower’s engineering function is Dave Holden who joins the company as Operations Manager. Originally from the oil and gas industry, Dave trained as a Turbine Maintenance Engineer with GE. He comes to BasePower after 15 years’ experience of commissioning projects in the UK, Indonesia and offshore.

 Dave will work alongside the BasePower team to manage the technical development and construction of new CHP energy centres on client industrial sites. As projects pass through construction into completion, he will play a key role in ensuring a smooth transition of the projects into full operation and compliance with Health and Safety and Environmental regulations. 

“Serah and Dave bring a wealth of experience to the business and we welcome them to our rapidly expanding team,” said Robin Hardy, BasePower Projects Director.