Arensis secures funding to develop UK renewable energy projects

By Arensis | August 24, 2018

Los Angeles-based Arensis, an international provider of distributed energy systems, announces the financial close of £13.5 million in debt funding ($17 million) from Hadrian’s Wall Secured Investments Ltd., a London Stock Exchange listed fund. The funding was secured for renewable energy facilities in the U.K., expanding the company’s growth and global operations.

“We seek to identify investments with attractive risk/return profiles supported by robust assets, appropriate control, strong management teams and strong value propositions,” stated Marc Bajer, CEO of Hadrian’s Wall Capital, the investment adviser to HWSIL. “Arensis has exciting potential and we are pleased to support their expansion in the U.K.”

Arensis provides the first truly decentralized hardware/software IOT based microgrid solution, converting local organic and inorganic biomass waste into renewable energy 24/7. In the last 12 months, Arensis purchased two underperforming U.K. wood pellet production facilities, saving U.K. jobs and quickly turning each of the plant operations around by installing its biomass-to-energy technology. The strategy was completed by vertically integrating a fuel supply in the U.K. for heating that replaces natural gas with renewable resources. Funding will be used for loan refinancing and to complete the integration of 52 Entrade units into the pellet production facilities. Financing at this scale was possible by de-risking the project with long-term fiber supply and offtake agreements, all within the U.K.

“The projects will produce [approximately] 85 GWh of thermal energy per year, helping the U.K. prevent at least 20,000 metric tons of greenhouse gas emissions annually,” stated Arensis Corporate Investment Director Tony Morberg. “Not only is this a benefit for the local environment but the integration of our technology is forecast to reduce production costs by over 20 percent.”

“Our financing agreement with Hadrian’s Wall demonstrates our fiscal credibility with institutional capital providers and marks the largest project financing to date for Arensis,” stated Arensis Chief Financial Officer Nick Tarditti. “Hadrian’s Wall Capital conducted exhaustive legal, technical, operational and financial due diligence and I’m very proud of our team for accomplishing this milestone transaction. We are all thrilled with the outcome and the new partnership with HWSIL.”

In addition to target customers including electricity generation facilities, manufacturing facilities, agriculture and food processing plants, automotive manufacturers and EV charging stations, local farming communities, data centers and commercial and residential buildings, Arensis is making a global impact as a provider of energy access to remote regions and rural areas currently without grid access to electricity or natural gas. Additionally, Arensis is bringing relief support to those most impacted by climate change. The decentralized energy units offer an off-grid disaster relief solution when the electrical grid goes down in a natural disaster.

“We extend our sincere appreciation to our partners, our advisers Bridge & York Capital Partners, and Hadrian’s Wall Capital for helping us complete our vision of vertically integrating U.K. pellet plant production utilizing biomass resources that are both local and sustainable,” stated Arensis CEO Julien Uhlig. “The culmination of putting together the right partners, the right team and the right technology has set us up on a production path for success in the U.K. and continued growth globally.”