What does the company do?
Upper Pitforthie Windgen was set up to own, build and manage a 500kW Enercon E48 wind turbine at the Upper Pitforthie farm in Aberdeenshire. The wind turbine generates clean renewable electricity which it supplies to the grid and a wood chip and grain drying business on the same farm. The drying business supplies woodchip to local biomass boiler owners, bringing the green energy element full circle; it is one form of renewable energy supporting another.
The main local user of the electricity generated, North Eastern Fuels (NEF), is a wood chipping and drying business also set up on Upper Pitforthie Farm as a joint venture between John Alexander, the farmer, and John Fotheringham, one of Upper Pitforthie’s directors. NEF has a 999 kW biomass system and a 450 kW electric immersion heater, both of which can be used to provide heat to dry wood chip.
The wind turbine is accredited for the Feed-in Tariff scheme, which pays a fixed amount (rising annually with inflation) for each unit of electricity generated, plus an additional amount for the electricity exported to the grid. The company can choose to opt out of the export Feed-in tariff and instead agree a contract with an energy supplier when wholesale electricity prices are higher.
Why did the company raise money?
The company raised funding on Abundance in 2015 to fund the construction of the turbine. Once complete and operational, the company raised money through a second investment on Abundance to refinance the original construction finance. This investment was repaid in full on 31 December 2016.
How is the company making an impact?
Upper Pitforthie Windgen is helping to increase the amount of renewable energy used in the UK’s electricity grid as we transition to a 100% low carbon energy future.
Key terms
Documents
Payment schedule
This table gives a breakdown of what was paid back on this investment, based on an example investment of £1,000.
| Payment date | Capital repayment | Interest | Total |
|---|---|---|---|
| 30 June 2016 | £0.00 | £59.50 | £59.50 |
| 31 December 2016 | £0.00 | £60.49 | £60.49 |
| 12 January 2017 | £1,000.00 | £3.94 | £1,003.94 |
| Total | £1,000.00 | £123.93 | £1,123.93 |