REG gets funding from Co-op Bank for wind farm

The group, which develops clean energy projects across the UK, said it has completed the £16m project financing of the 10 mega watt (MW) Sancton Hill wind farm near Market Weighton and the 6MW South Sharpley scheme in County Durham.

The loan is repayable over 10 years at a rate of 5.7 per cent and is provided by member-owned lender, the Co-op.

REG said funds from the loan will be drawn down in two tranches, with £9.7m drawn yesterday and £6.3m on the commercial operation date of the South Sharpley wind farm, expected by the end of the year.

Chief executive Andrew Whalley said: “We are very pleased to be able to maintain our relationship with The Co-operative Bank, which also provided two previous financings covering eight REG wind farms in 2011.

“The equity released will be reinvested in our next wave of construction projects as REG continues to expand its portfolio of renewable energy plant.”

The Sancton Hill site started commercial production in June and has five 100m tall Vestas turbines capable of generating around 28,500 mega watt hours of clean electricity annually.

REG also has the 4.5MW Loscar wind farm near Harthill, South Yorkshire, and a 2MW bio-liquid plant in north Leeds, which opened a year ago.

James Sutcliffe, senior manager at the Co-op’s renewable energy team, said: “We are extremely pleased to be able to support REG on its latest financing and look forward to working with the company again as it continues to develop its portfolio of renewable energy projects.”

Sancton Hill increased REG’s existing output by more than 25 per cent when it opened.

REG will donate almost £1m to a community fund over the wind farm’s anticipated 25-year lifespan.