Salix Finance Funding energy saving projects in Scotlands colleges

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Salix Finance - Funding energy saving projects
in Scotlands colleges EAUC-Scotland Campus
Sustainability Conference 6th of May
2008 Alastair Keir Paul Smyth Salix Finance
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

• Introduction to Salix Finance
• Scottish HEI FE activities
• Funding energy saving capital projects in
  Scotlands colleges
• Questions?

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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

• 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 is now required to provide 25 of
  their Salix fund 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
• Each project must meet 3 compliancy tests
• 5 year or shorter payback
• Be additional to anything that was be planned or
  is mandatory
• Have a lifetime cost of CO2 of less than
  200/tonne
• 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 will be available by the end of
  May
• Subject to demand we plan to run a workshop
  during June
• Closing date for applications will be end July
• Assessment of applications will be done in early
  August
• Notification of success or otherwise by mid
  August
• 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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Salix Finance managed a programme for 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 for
  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

• Do not forget that Carbon Trust Scotland may be
  able to assist with project identification.
• Contact Allan Crooks on 01355 581812 for Survey
  Support

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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