Aesica To Benefit From Investment In New £137M Northumberland Green Energy Plant

The initiative forms part of the company’s commitment to renewable energy and safeguarding the environment

Aesica, the global pharmaceutical contract development and manufacturing organisation (CDMO), is pleased to announce its involvement in a renewable green initiative involving its UK, Cramlington site.

• UK Green Investment Bank plc and John Laing Investments Ltd commit £50M to 27.7 MW Cramlington Combined Heat and Power plant
• Finished facility will generate 223 GWh of renewable electricity annually
• Generated electricity will be split between Aesica, one other pharmaceutical company and the National Grid
• The reduction in greenhouse gas emissions will equate to the removal of 25,000 cars from the UK’s roads over [20] years
• Project will create 250 construction jobs, 25 positions in plant operations and approximately 20 jobs in the supply chain

UK Green Investment Bank plc (GIB) and John Laing Investments Limited (JLI) have committed £50M of equity to a new £137M renewable energy facility in North East England, developed by Estover Energy. The biomass Combined Heat and Power (CHP) plant in Cramlington, Northumberland, will generate 223 GWh of renewable electricity annually. It is expected to reduce greenhouse gas emissions by circa [56] kt CO2e annually, the equivalent of taking 25,000 cars off the road during its lifetime.

Aesica Pharmaceuticals, together with another pharma company, will benefit directly from its output, alongside the National Grid. Green electricity will be routed to Aesica’s Cramlington site located in an adjacent industrial estate. The energy plant will also have the potential to provide 5 MW of renewable heat to neighbouring facilities.

GIB will make a £23M investment in the project, with JLI investing in a stake worth £27M. Barclays will provide the remainder of the funding as debt, 60% of which will be guaranteed by the Danish export credit agency Eksport Kredit Fonden (EKF).

The construction of the plant will be undertaken by a joint venture between Burmeister & Wain Energy A/S (BWE) and Burmeister & Wain Scandinavian Contractors A/S (BWSC). BWSC will operate the plant upon completion. Up to 250 jobs are expected to be created during the construction process, while 25 permanent positions will be maintained at the operational facility.

Fuel for the plant will be provided by Stobart Biomass Products Limited, plus local growers and forest industry suppliers.

Ian Muir, Managing Director at Aesica commented: “Our company is committed to best environmental practice and indeed our Cramlington site complies in full with ISO 14001and all appropriate environmental legislation. Consequently, we are always on the look-out for maximising the use of green, environmentally friendly energy.”

He continued: “We are therefore delighted to receive our energy supply moving forwards from the biomass combined heat and power plant and to playing our role through this initiative in reducing greenhouse emissions.”

Ed Northam, Head of Investment Banking at the UK Green Investment Bank, said:

“The Cramlington plant promises to create local jobs, support an industry whose vitality is essential to the growth of the regional economy and help cut UK greenhouse gas emissions while promoting the country’s adoption of green energy sources.”

About Aesica

• Aesica is a leading provider of finished dose and active pharmaceutical ingredient (API) development and manufacturing services to pharmaceutical partners.
• Aesica is a division of Consort Medical plc, a public company quoted on the premium list of the London Stock Exchange.
• Consort Medical plc is a leading, global, single source drug and delivery device CDMO through its two operating subsidiaries Bespak and Aesica. Consort Medical is at the leading edge of innovation and is committed to investing in patient, clinician and customer driven innovation to create new treatments, new markets and new opportunities.
• The Consort medical Group has facilities in King’s Lynn, Cambridge, Nelson, Milton Keynes, Cramlington, Nottingham, Queenborough and Hemel Hempstead in the UK; in Monheim and Zwickau, Germany; in Pianezza, Italy.

About The Project

• Total GIB share of investment: £23M
• Total capital mobilised: £137M
• Co-investors: John Laing, Barclays
• Expected completion: Late 2017/early 2018
• Developer: Estover Energy
• EPC contractor: JV between BWE and BWSC
• O&M operator: BWSC

About The UK Green Investment Bank
UK Green Investment Bank plc (GIB) was launched in November 2012. With £3.8B of funding from the UK Government, it is the first bank of its kind in the world. It is a “for profit” bank, whose mission is to accelerate the UK’s transition to a greener economy, and to create an enduring institution, operating independently of Government.

GIB is wholly owned by HM Government. The Company is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. A wholly owned subsidiary UK Green Investment Bank Financial Services Limited, is authorised and regulated by the Financial Conduct Authority. For more information, visit www.greeninvestmentbank.com.