Highlights
- Lombard’s dedicated green energy team and NatWest’s ‘not-for-profit’ specialist worked together with other parts of the bank to develop a tailored funding solution
- The Renewable Heat Incentive payments means that the project will pay for itself within six years, following which it will provide an income for the Trust
Kenward Trust installs biomass boilers to provide a reliable and efficient heating system across its sites.
About Kenward Trust
Kenward Trust was set up to provide shelter for the homeless. In addition, the Trust now runs drug and alcohol rehabilitation programmes, as well as providing education programmes for young people and working with the community, schools and colleges. The organisation also provides resettlement for ex-offenders and work for around 50 volunteers.
What did Kenward Trust want to achieve?
The Trust’s rural properties were previously heated using a variety of systems, which were unreliable and expensive to run. The decision was taken to acquire three biomass boilers that would be delivered over a period of time.
How did Lombard help Kenward Trust?
The NatWest specialist in the not-for-profit sector, who was working with the organisation, recommended that they speak to Lombard about funding the boilers.
“We looked at other means of funding but asset finance made most sense and also enabled us to benefit from the Renewable Heat Incentive which will make a significant difference to our income as a charity” Ian Davis, finance director.
Lombard’s dedicated green energy team was introduced and they recommended staged payments to counter the staggered delivery. The team also provided support in applying for the Renewable Heat Incentive (RHI) programme.
Lombard also suggested setting up a Progress Pay Lease Service facility that would release the money as it was needed.
Other expertise across the bank was used to meet our customer's needs. This included the Transaction Services and Documentation team who managed the transaction with the German supplier’s UK agent.
In addition, the Asset Management team were able to use their experience to liaise with the manufacturer, installer and supplier of the boilers.
“By installing the biomass boilers, we shall not only have the benefit of a reliable system that reduces our carbon emissions but one that is much more efficient. Since the installation we have already noticed how much warmer the buildings are Ian Davis, finance director.
How did Kenward Trust benefit?
Kenward Trust has gained by streamlining their fuel source and acquiring a more efficient heat source that provides more consistent heat, while becoming more carbon efficient.
In addition, the organisation will save 30% on its heating bills and once it has paid off the funding in six years, the RHI payments will provide the Trust with an income.
