The Farm Energy Company has reached financial close and broken ground on a 28MW solar and wind power development at GSK’s Irvine facility in Scotland.
The investment includes a 20-year power purchase agreement (PPA) with GSK on a private wire basis resulting in the creation of a new solar farm with an installed capacity of 19.9MW and two new wind turbines of 4MW each.
The project will deliver 85% of GSK’s Irvine energy needs.
The PPA ensures only a small capital investment is needed by the client.
The solar farm will include around 42,000 panels with structure support and electrical infrastructure installed within 23 hectares of land at the GSK site.
Two Enercon E126 turbines with hub heights of nearly 150 metres will also be built, adding to two existing turbines.
There will also be dedicated site infrastructure including a new substation and cable connecting the site to the supply point at Kilwinning.
When fully operational, the solar farm and turbines will produce 45 gigawatt-hours a year of electricity.
Farm Energy Company said work is well underway, and installation is scheduled for completion in late spring 2022.
Farm Energy Company managing partner and co-founder Paul Holmes-Ling said: “This is a significant milestone for GSK and we are delighted to have been able to realise their renewable energy ambitions which will not only have immediate benefits for the Irvine facility but will also create a legacy for the local community through significant bio-diversity improvements.
“We have been pioneering in our approach to combining different technologies in many of our projects.
“The combination of wind and solar in a large private wire scheme is best suited to GSK’s requirements at the Irvine site, and innovative models like this can show how businesses can reduce costs, improve energy security, and achieve Net Zero goals at the same time.”
GSK Irvine site director Cammy Mitchell said: “The production of our life-saving product is a very power-hungry process.
“GSK Irvine is now taking its biggest step yet to end its reliance on electricity generated elsewhere.
“The power purchase agreement with The Farm Energy Company builds on a series of investments in wind, biomass and biogas and will cut emissions by some 10,000 tonnes of CO2 per year.
“It will also allow us to make the single biggest contribution to GSK’s global renewable electricity target.
“GSK’s commitment is not just to becoming carbon net zero but also becoming nature positive. We are delighted that the contract includes an investment in enhancing the biodiversity of the significant area of land around our site.”
Debt finance was provided by Lloyds Bank, with Ikarus Capital Advisory acting as financial adviser and CMS as legal adviser to Farm Energy in the transaction.