A £13m loan will help develop two new temporary energy centres and underground pipes for the massive Liverpool Waters project - one of the city's most significant regeneration projects.
The financial boost will support the development of the first phase of the heat network at the site, which will eventually be home to five neighbourhoods and is transforming Liverpool 's northern docks.
CBRE’s investment advisory team arranged the £13m senior loan facility, on behalf of the Merseyside Pension Fund, to support the development.
The Heat Network, which will be delivered by Peel Energy, will be an "integral" component to the Liverpool Waters regeneration project.
According to Peel Energy, it has established a dedicated energy supply company which will build, own and operate the Heat Network.
Completion is expected in 2023, and the first phase will provide up to 19 gigawatt hours of heat energy per annum to consumers at Liverpool Waters and the greater waterfront area.
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It's also hoped the project will contribute towards the Government's CO2 targets, by delivering low carbon heat and power.
Muir Miller, managing director of Peel Energy, said: “We are very pleased the Mersey Heat project is being financially supported by the local Merseyside catalyst fund. Their involvement highlights the importance the Liverpool city region is placing on addressing low-carbon energy generation and its willingness to innovate.
“So far, the Ƶ has made great progress in de-carbonising the electricity sector but more needs to be done on heating and transport emissions. This is the first phase of a ten-year project, which we hope will eventually supply around 9,000 homes and numerous businesses along Liverpool’s waterfront.
"The scheme clearly demonstrates Peel Land and Property’s intent to play a significant part in tackling carbon dioxide emissions from heating, by providing a cost effective and attractive low carbon offering to developers.”
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Two temporary energy centres, as well as initial underground pipes to transfer heat energy at the Princes and Central Docks, and northern areas of Liverpool Waters, will be installed.
Joe Bahsoon, director of the investment advisory at CBRE Capital Advisors, said: “We are very happy to be involved in arranging this loan facility on behalf of the Merseyside Pension Fund and to one of the region’s most established developers.
"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 Ƶ government’s Clean Growth Strategy.”
Cllr Pat Cleary, chair of Merseyside Pension Fund said: “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.
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"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 4m sq ft of commercial space with cleaner CHP technology as part of the Ƶ’s drive to reduce carbon emissions.
"This project will contribute towards the Ƶ Government's CO2 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.”
