Update on Speyside Renewable Energy

Partnership’s CHP Plant

Grampian Biomass Working Group

8 June 2016

Scope

• Estover & Renewable Energy

• Scot Gov Energy policy

• The Macallan

• Other projects

• Q&A

Estover

• Estover develops sustainable power and infrastructure

projects from inception through financing and then manages

them in operations. Since being founded in 2010 Estover has

developed and financed over £200m worth of power projects.

• Our involvement continues during construction and operation.

Estover has retained an equity stake in all its projects, and

has been awarded the contract to run the projects on behalf of

the owners.

Estover’s biomass CHP projects

• Kent

• Cramlington

• Macallan

Cramlington Headlines

• Estover's £138m 27.7MWe biomass CHP plant in Cramlington, Northumberland was financed in September 2015.

• £48m of equity was committed by John Laing Group plc and the UK Green Investment Bank plc alongside £90m of debt from Barclays Bank plc, with an export credit guarantee from EKF.

• The plant will supply electricity and heat to Aesica Pharmaceuticals and MSD, two of the largest employers in the North East's highly successful specialist pharmaceutical cluster. It will also supply low carbon electricity to the National Grid.

• Fuelled from local wood provided by local growers and forest industry suppliers from an abundant local resource - 500,000 acres of forestry within 60 miles

• Construction commenced in September 2015 with completion expected in late 2017

• Construction to be undertaken by Burmeister & Wain Scandinavian Contractors A/S (BWSC) and Burmeister & Wain Energy A/S (BWE)

• Operations & Maintenance by BWSC

• Enough electricity to power 52,000 homes, reducing greenhouse gas emissions by the equivalent of taking 25,000 cars off the road per year.

• Estover is retaining an equity stake in the project, and a 12-year contract to provide ongoing general management, project & construction management services, as well as fuel management services for the project.

Discovery Park (CHP in Kent) Headlines

• The biomass CHP plant in Sandwich, Kent will supply heat and electricity to Discovery Park, one of Europe's leading science and technology parks. The plant will source its fuel predominantly from traditionally managed coppiced woodlands, stimulating the local forestry industry and improving traditionally managed forests.

• Providing low cost carbon energy for Discovery Park

• Up to 16MWe power and 11MWth heat. Enough to power 22,000 homes

• Abundant local fuel - 430,000 acres of unmanaged woodland in South East England

• Construction due to start Q3 2016

Estover’s Macallan Project – SREP Ltd

• By Craigellachie, Estover's Speyside CHP plant was financed in August 2014.

• The £78m project won the 2014 IJ Global European Biomass Award in recognition of the innovative financing structure used. The project issued a bond guaranteed by Infrastructure UK and was the first greenfield renewables development to do so. Equity was invested by John Laing Group plc and the UK Green Investment Bank plc.

• The 13.5MWe plant will provide low carbon electricity to the national grid and steam to the Macallan distillery, one of Scotland's most successful whisky distilleries.

• Construction started in September 2014

• £78 million investment

• Decarbonising the Macallan Distillery

• 12 - 15MWe - enough to power more than 20,000 homes

• Abundant local wood fuel - 750,000 acres of forestry within 50 miles

• The combined heat and power (CHP) plant will generate enough renewable electricity to power more than 20,000 homes, as well as providing 90% of all the steam needed in Macallan's distillation process.

Macallan – pre work

Any questions?

harry.Jameson@estoverenergy.co.uk

0131 209 7990

10 Castle Street

Edinburgh

EH2 3AT