Salix Finance Funding energy saving projects in Scotlands colleges

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Salix Finance - Funding energy saving projects
in Scotlands colleges Stirling Workshop - 17th
of June 2008 Paul Smyth Salix Finance, Ian
Millar - Atkins, David Jordan University of
Stirling
Our mission is to work with the public sector to
reduce carbon emissions through investment in
energy efficiency and renewable technologies.
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Salix Finance Agenda

• 1000am Arrival coffee tea
• 1030am Introductions
• 1045am Funding energy saving capital projects in
  Scotlands colleges
• 1115am Technical advice and project review
  Ian Miller (Atkins)
• Salix Project Compliance tool
• 1215am University of Stirling Capital
  investment programme in energy saving projects
• 1240am Questions and closure followed by buffet
  lunch

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Salix Finance

• Introduction to Salix Finance

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Salix Finance who are we?

• Independent not-for-profit company
• Set up by the Carbon Trust in 2004
• Work only with public sector bodies
• To reduce energy costs and carbon emissions
• Show leadership in tackling climate change

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Salix Finance what do we do?

• Stimulate investment
• Using ring-fenced funds
• Recycle all projected savings
• Focus on cost-effective projects with high CO2
  reduction impact
• Match funding typically 250K
• Reduce energy bills
• Make capital go twice as far

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Salix Finance - types of technology

• The following lists the main types of technology
  in the fund
• BEMS
• Boiler replacements and controls
• Cooling and heating projects including controls
• Insulation Building Fabric
• Lighting upgrades and controls
• Motors and motor controls
• Office equipment improvements and network PC
  management
• Renewables
• Swimming pool covers and controls
• Ventilation
• Voltage reduction

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Salix Finance - project criteria

• Projects must deliver both CO2 revenue benefits
• Two project compliance criteria
• 5 year payback period and
• 100/tCO2 lifetime
• Energy efficiency capital projects
• As documented in the Salix Project tool
• Or approval through suitable demonstration
  project
• CHP and renewable energy technologies
• Include a feasibility study carried out according
  to a recognised methodology

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Salix Finance All Clients projects breakdown
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Salix Finance All clients projects breakdown
Insulation Projects
Insulation Projects
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Salix Finance

• Scottish HEI FE activities

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Salix Finance - working with Higher Education in
Scotland

• Salix currently have 8 University clients in
  Scotland
• Edinburgh, Glasgow, St Andrews, Stirling,
  Aberdeen, Abertay, Napier and Strathclyde
• With Scottish Government funding added Salix have
  committed 4,158,000 to these universities.
• Each University provides an additional 25 for
  further recycling projects

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Salix Finance

• Funding energy saving projects in Scotlands
  colleges

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SALIX Finance a new opportunity for Scotlands
colleges

• Salix has agreed funding with the Scottish
  Government to support a programme for Scotlands
  colleges.
• The funding has to be recycled and so will be run
  as project loans
• Colleges apply for loan funding to Salix for
  compliant energy saving capital projects
• Total funding available is 1.2 million

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SALIX Finance a new opportunity for Scotlands
colleges

• Each project must meet 3 compliancy tests
• 5 year or shorter payback
• Have a lifetime cost of CO2 of less than
  200/tonne
• Be additional to anything that was planned or is
  mandatory
• Loans will be repaid over 4 years in 6 monthly
  instalments
• New projects applications will be welcome every 6
  months.

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SALIX Finance a new opportunity for Scotlands
colleges

• Application forms Available by the end of May
• Application form
• Application notes
• Compliance tool
• Workshop during June
• Closing date for applications end of July
• Assessment of applications done early August
• Notification of success or otherwise mid August

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SALIX Finance a new opportunity for Scotlands
colleges

• All projects to have a standard signed legal
  agreement (wording now on our website)
• Payment of funds on submission of invoices
• 1st repayment February 2009 then 6 monthly
  thereafter
• 2nd round for applications closing December 2008
  with confirmation in January 2009
• 1st repayment from these loans in August 2009
• 3rd round for applications closing July 2009

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Outline of the Scheme

• Funding is available for multiple projects
• Each project must result in an energy saving
  the energy bill will reduce
• Each project must have paid for itself before its
  location is redundant
• A written quote is required for projects over
  50,000 (submitted with application)

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Outline of the Scheme

• What do you need to know before completing the
  Compliance sheet?
• Expected life of the location
• Cost of the project
• Cost of energy
• Energy saved by the project
• What type of technology it is
• Can you reclaim VAT (if not it must be included)

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Salix Finance

• LSC pilot

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Salix Finance English FE Colleges funded by
Learning and Skills Council

• LSC wanted to support sustainable projects in
  colleges it funds.
• It agreed with Salix a programme by which
  colleges could apply tofor funding for individual
  projects.
• Salix agreed project criteria with LSC of 5 year
  payback and 200/t lifetime CO2
• Colleges could apply for up to 150,000 each
• Applications were submitted to Salix for
  assessment using the Salix project compliance tool

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Salix Finance - working with English FE Colleges

• Salix / LSC Pilot

Assessed applications Number of Colleges -
230 Number of projects - 1,248 Total
value of projects - 22,721K Projected
savings Annual financial savings -
6,441K Lifetime Energy Saving -
49,208K Annual CO2 saved - 47,047 T
Lifetime CO2 saved - 359,457 T Average
payback - 3.52 years Grant payments to
be made in April 08, projects to be completed by
September 08
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SALIX Finance working with English FE Colleges
(top 15 technologies)
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SALIX Finance working with English FE Colleges
(16 to 30 technologies)
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SALIX Finance a new opportunity for Scotlands
colleges

• Support and advice
• Support team set up by Salix to assist with
  applications
• Email to scsupport_at_salixfinance.co.uk
• Additional technical support
• Do not forget that Carbon Trust Scotland may be
  able to assist with project identification.
• Contact Allan Crooks on 01355 581812 for Survey
  Support
• Scottish HE experience
• 4 Universities have been working with Salix for
  more than 18months, please use their experience
  (contacts via CaSPr)

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Next stages

• Application Form
• Complete
• Email to scapplications_at_salixfinance.co.uk
• Print out and get it signed
• Post to Salix Finance by 31st July 2008
• Compliance Sheet
• Complete
• Email to scapplications_at_salixfinance.co.uk
• Print out and get it signed
• Post to Salix Finance by 31st July 2008

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Salix Finance

• Questions?

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25 Southampton Buildings, London WC2A 1AL t 020
3043 8800 f 020 3043 8799 info_at_salixfinance.co
.uk www.salixfinance.co.uk