In April 2014, STAR established European Generation Ltd to invest in Twinwoods Heat & Power Ltd (“Twinwoods”), a company that was set up to develop and construct a 3.4MW combined heat and power (“CHP”) facility on an industrial park in Bedfordshire.
Twinwoods was a partially complete waste wood CHP plant, controlled by a senior lender following failure of the original project sponsor. This acquisition represented an opportunity to invest in a CHP plant grandfathered into an attractive subsidy for the long term. There was potential to expand into other assets but the UK’s renewables regime has become less attractive for new assets and Twinwoods remains a standalone investment.
The management team is in the final stages of commissioning the facility.