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Triple Point Energy Infrastructure buys CHP+ company Spark Steam

Triple Point Energy Infrastructure buys CHP+ company Spark Steam – Triple Point Energy Efficiency Infrastructure has completed an investment in Spark Steam, a company which owns and operates a combined heat and power (CHP+) asset and which was part of TEEC’s pipeline identified at IPO.

Under the terms of the investment, Triple Point Group has provided £8m of senior debt finance secured against Spark Steam, the underlying assets, equipment, and contracts. The interest rate is 7.375% per annum, and carries a term of 10.5 years, amortising over the term. 

Spark Steam owns an operational, established energy centre located in Teesside, supplying heat, electricity, and also carbon dioxide to the UK’s largest tomato grower, APS Salads (which is responsible for approximately a third of the UK’s tomato production), pursuant to an Energy Services Agreement, with a remaining term of approximately 15.5 years. Spark Steam also has the potential to sell electricity to other energy uses under private wire connections.

An additional benefit of the CHP+ facility is that the main waste product from combustion, carbon dioxide, is used to enhance crop yields on site rather than being vented into the atmosphere. The energy centre comprises two state of the art Jenbacher gas engines and heat/carbon dioxide recovery and distribution equipment.

The transaction is aligned with TEEC’s targeted risk/return profile and objective of delivering secure investments that generate a total return for investors comprising sustainable income and capital growth. It also supports the transition to a low carbon economy in accordance with the UK government’s overall environmental targets. The transaction is refinancing debt previously provided in part by investees of other funds under the management of the Triple Point Group and has been approved by the Board in line with TEEC’s conflict of interest procedures.

John Roberts, TEEC’s chairman, said: “I am delighted that TEEC has made this investment into an asset which delivers highly energy efficient services to an important UK domestic producer of food items. The investment will continue to help APS to grow produce with low carbon intensity and with optimised energy efficiency. I am confident that Triple Point, the Company’s Investment Manager, will continue to progress the execution of our pipeline of energy efficiency investment opportunities.”

TEEC : Triple Point Energy Infrastructure buys CHP+ company Spark Steam

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