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Scottish National Investment Bank back Iona wind partnership with £13m

Scottish National Investment Bank investing £13m in Iona windfarm partnership.

The Scottish National Investment Bank has invested £13 million in a wind farm project alongside a London fund manager.

The Iona wind partnership is managed by Asper Investment Management and is focussed on building onshore wind farms in Scotland with a capacity of 800MWby 2026.

The partners said the renewable energy schemes will save 600,000 tonnes of carbon dioxide per year through the generating  of  renewable energy once fully operational.

Sites across Scotland being considered

A spokeswoman for Scottish National Investment Bank confirmed potential sites across Scotland have been identified for the windfarms but they are “subject to planning”.

Eilidh Mactaggart, Scottish National Investment Bank chief executive, said: “The Iona wind partnership has the potential to deliver renewable energy for up to 850,000 homes and significantly reduce emissions and supports the bank’s net zero mission.

“The development of onshore wind in the UK has stalled since the removal of subsidies in 2015.

“The bank’s investment has allowed Asper IM to reach the required scale to make the fund a reality.

“We are pleased to be working with Asper Investment Management who are committed to investing in businesses that develop, build and operate sustainable infrastructure and assets and have a track record in developing onshore wind projects”

Asper manages funds and investor mandates up to €1.3billion (£1bn). It was founded in 2016 when the renewable infrastructure business of institutional investor HG was spun out by its management team.

Green energy to power homes

Asper estimates 12,800 kilotons of carbon dioxide will be saved by Iona’s assets in their lifetime, sufficient to power 850,000 homes with green energy.

Luis Quiroga, Asper head of investor relations, said: “Asper’s expertise is to ‘build the new’ infrastructure for the energy transition.

“And Iona’s investments will make a crucial contribution to Scotland’s future – helping to decarbonise its energy supply and boosting the Scottish economy.”

The bank, established in November 2020, has also previously backed forestry managers Gresham House, committing £50 million.

Its portfolio also includes electric vehicle charging network owner & operator, Forev, tidal turbines company Nova Innovation and heat battery company Sunev.

The news today came as local MSP Douglas Lumsden said Scotland’s national investment bank should be used to finance “excellent projects” undertaken by the Net Zero Technology Centre in Aberdeen.

He pointed to the NZTC as a perfect opportunity for small investments having a significant economic and environmental impact.

Mr Lumsden said: “During the evidence session to the Net Zero Committee, the chief executive of the bank mentioned the Net Zero Technology Centre in Aberdeen and its expertise and the positive impact that that will bring for future energy development.

“I hope that the bank can work closely with the Net Zero Technology Centre and tap into the excellent projects that are being nurtured there, provide the capital required and help lead an increase in the renewable energy sector and protect the jobs of thousands of workers in the north-east.”