Irish renewable energy group, Gaelectric, has acquired Imperative Energy Ltd., a leading provider of biomass energy solutions in Ireland and the United Kingdom. Founded in 2007, Imperative Energy Ltd. has completed over 70 biomass installations totalling over 40 MW in energy capacity, with a further 10 projects currently under construction.
Commenting, Gaelectric Group CEO, Brendan McGrath, said: "We are delighted to enter the biomass business with the acquisition of Imperative Energy, one of the leading providers of biomass energy solutions in Ireland and the UK. We view this as an important strategic step for Gaelectric that provides us with diversification across renewable energy sectors and access to significant growth opportunities in a biomass market that is continuing to evolve. Just 2% of the 60 million TOE (tonnes of oil equivalent) UK heat market, with 28 million TOE in commercial and industrial buildings, is currently provided by biomass. The continuing focus on sustainability, energy security and costs, and the supportive policy environment towards biomass, particularly in the UK, assures us that the fundamentals for growth of the biomass sector are already in place."
He added: "However, it is ultimately the value that the Imperative Energy business will deliver to the Gaelectric Group through their core offering, project revenues, market positions, reputation, knowledge and skills that convinced us of the need for them to join Gaelectric."
Imperative Energy CEO, Joe O'Carroll, said: "At Imperative Energy, we offer our customers a range of renewable energy solutions from turnkey provision of biomass heating and CHP to taking on the role of Energy Supply Company (ESCO) where we design, finance, build and operate biomass projects on behalf of clients, providing them with cost effective, metered, renewable biomass energy. Our installations are in place across the government, healthcare, hospitality and processing (food and manufacturing) sectors, including Government Buildings in Dublin City Centre, and a district heating system for all Irish State buildings between Kildare Street and Merrion Street, Dublin.
He added: "Gaelectric's core strengths in project development, management and financing will bolster our resources in key areas including planning and permitting, project and corporate finance, construction management, energy markets and price optimisation, and contractual relationships on each of our projects."
With the Imperative Energy acquisition, Gaelectric Group now has an established presence in four key renewable energy sectors, namely onshore wind on the island of Ireland and the USA, offshore wind in the Irish Sea, energy storage and biomass energy.
Group CEO Brendan McGrath said: "Over the last 20 months, Gaelectric has secured over €155million in debt facilities which have allowed us to accelerate the transition of our development projects to operating assets, particularly in onshore wind. We are also starting to see operating revenues from our wind assets make a significant contribution to group revenues. Our financial position has also helped us strengthen our positions in our existing markets and enter new markets, such as the biomass sector, through acquisitions such as the Imperative Energy Ltd acquisition we are announcing today."