A £7m energy efficiency project has commenced at a UK chemical manufacturing plant.
New boilers and heat-recovery measures will be installed at Huntsman’s plant in Wilton, Redcar, with the expectation to reduce annual carbon emissions by 28,000 tonnes – the equivalent of taking 12,750 cars off the road.
Sustainable Development Capital Limited (SDCL), of which the UK Green Investment Bank plc (GIB) is a cornerstone investor, has committed £7m to the major energy efficiency project.
The factory will be able to produce 100% of its own steam, providing long-term cost certainty, energy security and resilience.
SDCL expects the project to make the biggest impact of any investment made by its UK Energy Efficiency Investments (UKEEI) fund to date in terms of greenhouse gas emissions reduced per pound invested.
Construction work has commenced with the project scheduled for completion by summer 2017.
Edward Northam, Head of Investment Banking, GIB, said: “Many manufacturers continue to rely on low-efficiency boilers to service their energy needs. By investing in new technology, the country’s energy intensive industries can reduce energy wastage.
“Huntsman is an example to its peers; it has recognised that it can cut costs and help mitigate climate change by making its processes more energy efficient.”