Arrowpoint Advisory secures £50m five-year framework project funding agreement for BasePower

Arrowpoint Advisory has advised BasePower on its £50m five-year framework project funding agreement with SDCL Energy Efficiency Income Trust plc (“SEEIT”). BasePower develops and operates on-site power generation projects for commercial and industrial clients in the UK utilising a range of energy efficiency and carbon reducing technologies including Combined Heat and Power ("CHP"), solar photovoltaic (PV) and microgrid projects.

The agreement will allow BasePower to accelerate the delivery of sustainable energy projects, having already developed award-winning energy centres for some of the UK’s largest food and automotive manufacturers seeking to reduce their energy costs and carbon footprint.

SEEIT is a UK listed investment trust launched to invest exclusively in the energy efficiency sector. Its projects are primarily located in the UK, Europe and North America and include cogeneration assets in Spain and 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 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, energy efficiency and microgrid projects as UK industry continues to decarbonise.

Dan Poulson, a Founding 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.”

Dan went on to add: “The support and expertise that Arrowpoint Advisory demonstrated whilst securing this transformative funding package for BasePower was second to none. Ian, Lewis and Rory worked with us every step of the way to ensure a successful outcome and achieve an exciting new milestone for the business.”

Lewis Gray, Director, Arrowpoint Advisory, concluded: “We are delighted to have had the opportunity to support BasePower in agreeing a funding package to deliver its pipeline of energy efficiency projects. BasePower is at the forefront of the UK’s drive to reach ‘net zero’ by 2050 and is well set to evolve its proposition as new generating and emission reduction technologies emerge and become commercially viable. We wish the team all the best on their journey and are confident that SEEIT represents a well-aligned partner for the next stage of growth.”

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