Client Requirement Overview:

Buro Happold (technical advisors) engaged QMPF to assist in the delivery of an Investment Grade Business Case (“IGBC”) to Renfrewshire Council to support its application for Low Carbon Transition Programme (“LCITP”) funding for a planned district heating scheme near Glasgow Airport.

The proposed district heating scheme will utilise an ambient loop Water Source Heat Pump (“WSHP”) with heat supplied from Scottish Water’s Laighpark Waste Water Treatment Works and will be located in the Advanced Manufacturing Innovation District Scotland (”AMIDS”). The scheme will provide heat to two new innovation centres; the National Manufacturing Institute Scotland (“NMIS”) and the Medicines Manufacturing Innovation Centre with subsequent development anticipated to be phased thereafter until completion over the next 10 to 15 years. Future development of the site is envisaged to be market driven and include up to c.150,000 sqm of commercial floor space. The delivery of a district heating scheme at the AMIDS site will help to deliver the key objectives of AMIDS to “attract ambitious companies harnessing new technologies and accessing cutting edge research” by providing “a high-quality environment that supports healthy working, fosters collaboration and promotes sustainability”.

The first four phases of the scheme (including NMIS, MMICand future development at the AMIDS site) are expected to be built out by 2027 and have a capex value of c.£11m and the IGBC was developed on this basis.

QMPF Approach:

QMPF worked in close collaboration with the technical advisors (Buro Happold) to establish the base case for the scheme. QMPF was involved in discussions with Buro Happold to determine the most financially viable scheme, from a range of options, to present as the base case. This was an iterative process and involved the refinement of modelling assumptions including the inclusion of connection charges and an appropriate starting heat tariff. QMPF then developed a financial model around this base case which was used as the basis for the financial section of the IGBC. QMPF also ran several sensitivities on the base case and these were presented in the IGBC.

QMPF presented the key financial model outputs to the Council and illustrated the financial impact of the district heating scheme both on a project and wider Council level to ensure that the Council fully understood the financial implications of undertaking the scheme. QMPF highlighted the Council funding requirement and demonstrated the optimum approach to funding the project to ensure that the project delivered value for money for the Council. QMPF presented a range of sensitivities to the Council which assisted the Council in determining which phases of the wider scheme should be presented in the LCITP funding application and also allowed the Council to quantify the risk associated with various project assumptions.

With a continued push to tackle the effect of climate change and to achieve the government’s goal of net zero, there is funding available for low carbon energy projects in Scotland and England to encourage green investment.

We have put together a note on the open funding round for the Low Carbon Infrastructure Transition Programme and the Public Sector Decarbonisation Scheme and associated Public Sector Low Carbon Skills Fund.

DOWNLOAD HERE

If either of these funds are of interest, our renewable energy team would be delighted to discuss the funding schemes and your low carbon energy projects in more detail.

QMPF is delighted to have been appointed on the Crown Commercial Services (“CCS”) RM6169 Corporate Finance Services 2 Framework. QMPF was successful in its submission for all four lots it applied for

• Lot 1: Corporate Finance
• Lot 2: Specific Corporate Transactions
• Lot 4: Debt Capital Markets
• Lot 6: Infrastructure

QMPF is delighted to be the only SME appointed on Lot 4, reflective of its recent experience advising public sector bodies on a range of financing structures. The Framework can be used by UK Public Sector bodies including central Governments, their agencies, Non-Departmental Public bodies, NHS bodies and Local Authorities. Universities and other non-Public sector bodies can also use this Framework Contract. The Framework runs to June 2024 and replaces CCS’s RM3719 Corporate Finance Services Framework Agreement. QMPF also continues to operate under CCS’s RM6008 Management Consultancy Framework Two (through Lot 1 – Business Consultancy Services).

Graeme Tough, Director, QMPF, said, “QMPF is delighted to have been appointed to the Framework on all four Lots we submitted a response against and will now look to grow our existing relationship with CCS. The Framework is ideal in allowing public sector clients to access a range of corporate finance services in a highly efficient way and we look forward to competing for opportunities that arise from our key public sector clients. In unprecedented and uncertain times, the Framework enables the public sector and similar bodies to access advice to support innovative solutions, something QMPF is adept to handle.”

If you would like to discuss services available under the Framework or any other public sector corporate finance requirement, please contact Graeme using the details listed here