Aura Power Secures £10 Million Funding From Novuna
The title of this post, is the same as that of this article on Solar Power Portal.
These two paragraphs introduce the deal.
Aura Power has announced the successful closing of a £10 million debt facility with Novuna Business Finance. Novuna is a part of Mitsubishi HC Capital UK PLC, designed to support projects from early development through to the operational phase.
Bristol-based Aura Power is developing an active pipeline of utility-scale solar PV and battery energy storage of about 12GW in the UK, Europe and North America. The funding will help progress global development for Aura, covering expenditures like grid payments, planning fees and legal land costs.
These two paragraphs describe some of Aura’s projects.
In December 2023, Aura was granted planning permission for a 100MW/400MWh battery energy storage (BESS) project in Capenhurst, Cheshire. It was the third UK project to receive planning permission last year, alongside Aura’s 49.9MW Horton Solar Farm located in East Devon and its 49.9MW Hawthorn Pit Solar Farm in Durham.
Aura has been active within the solar and battery industries, with a pipeline in development in excess of 20GW. Last week (2 May), following an appeal, the developer secured planning permission for an Essex solar farm that will have an export capacity of 30 MW.
Nearly, forty years ago, I started a finance company in Ipswich with a friend. Our financing was mainly directed towards truck leasing for companies moving containers to and from the Port of Felixstowe.
Before, I committed my money to that venture, I built a large mathematical model of the proposed business. I found, that there were some unique financial properties to leasing quality trucks, that meant losing large sums of money were difficult.
I wouldn’t be surprised that leasing battery energy storage (BESS) systems have a lot of things going for them, if you have the right contract.
This may explain, why there a large number of companies in the market of providing grid batteries.
- At the top end; Centrica, Rolls-Royce and SSE will supply you with one.
- Funds like Gore Street and Gresham House and others allow you to invest in batteries.
- At the other end of the market are companies like Aura Power.
I suspect, that as with truck-leasing company, the financial flows are very stable and investor-friendly, if you get the model right.
Smart Train Lease Aims ‘To Make Renting Trains As Easy And Simple As Renting A Car’
The title of this post, is the same as that of this article on Railway Gazette International.
These four paragraphs outline the scheme.
Siemens Mobility has established a leasing subsidiary that would enable train operators to use its Mireo Smart battery, hydrogen and electric multiple-units without needing to make long-term investment commitments.
Smart Train Lease GmbH would make available at short notice multiple-units already approved for operation. These could be short or medium-term leases, with services such as maintenance available as part of the package. The aim is to provide operators with an economical way to quickly and flexibly expand their fleets and try out more sustainable traction technologies.
‘We want to make renting trains as easy and simple as renting a car, and thus help accelerate the mobility transition’, the leasing company’s CEO Benjamin Dobernecker explained on February 14.
Smart Train Lease will initially operate in Germany, although it plans to expand throughout Europe in the medium term.
I like this idea and I think it will work.
Metier Management Systems And Artemis
When four of us started Metier Management Systems in 1977 to sell our mini-computer-based project management system; Artemis, we generally rented or leased our systems, although we did sell some as the years progressed.
- For a fixed fee per month, a company got a project management computer and all the software.
- The fixed fee included installation, first line support, training and software updates.
- We could also supply extra training and project management consultancy at appropriate rates.
- The only extra costs to the client were the electricity to power the hardware and the paper to put in the printer.
- We also allowed clients to convert leases into outright sales.
This simple sales model appealed to a lot of our clients.
- The cost of the system was easy to budget.
- Many of our clients were happy with leasing or renting computer equipment.
- As the system was desk-sized, it easily fitted the average office.
But the leasing model was very advantageous to us.
- Most of our clients were large high-value quality organisations like big oil companies, nationalised industries and engineering consultancies.
- Our Finance Director and our Bank Manager at Lloyds Bank devised a plan, whereby we bundled a number of high-quality leases together and sold the bundle to Lloyds Bank’s leasing company.
The money we received gave us a healthy cash flow.
- The cash flow was then used to fund Research and Development and to finance more sales.
- If say someone like BP or Shell should phone up or send a fax, wanting a system immediately, we were generally able to fulfil their request.
I am sure that Siemens Mobility will be using a similar model.
They will aim to have trains in stock to fulfil clients needs.
So if Deutsche Bahn phone up saying have you got a three-car battery-electric train that works with 15 KVAC and has a range of 100 kilometres for next Monday, Siemens Mobility can generally say yes.
What helps is that the modular Mireo Smart multiple unit comes in battery, hydrogen and electric versions.
Extras could include full servicing a driver.
So Siemens Mobility will plug the train together and deliver it.
How Would Siemens Use The Leasing Model In Great Britain?
Consider.
- There are a lot of routes that need to be decarbonised in Great Britain.
- Many of these routes have electrification at one or both ends.
- Often these routes terminate in a bay platform.
- On most of these routes a two-, three-, four- or five-car train will be sufficient capacity.
- In the Desiro City, Siemens have a train, that is acceptable to Great Britain.
- If routes in Great Britain are to be electrified, they must be electrified with 25 KVAC overhead wires.
- Trains would be 100 mph, so they wouldn’t be limited as to routes.
- A Mireo-B has a range of between 80-100 kilometres or 49.7-74.6 miles.
I am sure Siemens Desiro City or its European equivalent; Mireo can be developed into a family of trains suitable for GB!
- The basic train would be two driving cars.
- Length would be increased by coupling trailer cars between the two driving cars.
- Hydrogen power would be in one of the trailers.
- Batteries would be under an appropriate number of cars.
Battery trains would be able to use a simple automatic charger, similar to the one, that I described in GWR Trialling Transformative Ultra-Rapid Charging Train Battery.
An Example – Mid-Cornwall Metro
This map shows the Mid-Cornwall Metro.
Consider.
- Newquay and Par is 20.8 miles.
- Falmouth Docks and Par is 30.8 miles.
- Newquay and Falmouth Docks is 51.6 miles.
- The maximum speed between Par and Newquay is around 30 mph
- The maximum speed between Par and Falmouth Docks is around 50-70 mph
- There are twelve intermediate stations.
- There is a reverse at Par station.
- Charging would be easy to install at Falmouth Docks, Newquay and Par.
- In Par Station – 10th February 2024, I suggested that Par station could be fully-electrified, so that expresses could have a Splash-and-Dash on their way to London and Penzance. If all platforms at Par were electrified the Mid-Cornwall Metro trains could charge from the electrification, as they reversed.
There are two main ways that the Mid-Cornwall Metro might operate.
- There would be chargers at Newquay and Falmouth Docks and trains would shuttle the 51.6 miles between the two stations.
- There would only be charging at Par and trains would after charging at Par go alternatively to Newquay and Falmouth Docks.
The first might need smaller batteries and the second would only need one charger.
An Example – Uckfield Branch
The Uckfield branch is in Southern England.
- It is not electrified between Hurst Green Junction and Uckfield, which is 24.7 miles.
- There are eight intermediate stations.
- The line can accommodate ten-car trains.
There is space at Uckfield station for a charger.
Charging would be at Uckfield station and North of Hurst Green Junction, where it will use the existing electrification.
Conclusions
This leasing/rental model will surely encourage train operators to replace diesels with appropriate zero-carbon alternatives on routes that need to be decarbonised.
Bristol-Based Manufacturer And Centrica Agree Solar Power Purchase Agreement
The title of this post, is the same as that of this article on BusinessLive.
These three paragraphs outline the story.
A Bristol-based architectural aluminium manufacturer has agreed a power purchase agreement and long term lease of 7,000 solar panels on the roof of its UK headquarters.
Smart Architectural Aluminium (Smart) agreed the deal with Centrica Business Solutions, which will see the 2.94MW installation provide Smart with green energy for the next 25 years whilst servicing 20% of the sites current energy needs.
Centrica Business Solutions has started construction on the 7,000 solar panel array, across the roofs of three buildings at the manufacturing site in Yatton, near Bristol. The 2.94MW installation is the result of a long -term lease agreement between Smart and Centrica Business Solutions, which will see Centrica lease the roof space, finance the project and agree a power purchase agreement with Smart.
Some cynics will look at this deal and think that someone is getting ripped off.
- But the project starts with a non-productive asset; three roofs, which Centrica cover with solar panels.
- Most of the electricity generated will go to Smart and be paid for, as they would do, if they get it from the grid.
- Smart gets paid for the lease of the roofs.
- Centrica gets paid for any electricity that is fed into the grid.
- The leasing company gets paid by Centrica.
Centrica would appear to be the company taking the risk and if they do their sums correctly, they should make a profit.
Is This The Way We’ll Drive Hydrogen-Powered Vehicles?
In Hydrogen Business Model / Net Zero Hydrogen Fund: Shortlisted Projects Allocation Round 2022, I listed all the hydrogen electrolyser projects on the shortlist for Government funding, if they pass the due diligence.
One project is from two companies H2 Energy and Trafigura, who are building a business model in West Wales, where you lease a hydrogen-powered truck for the same price as a diesel truck. You only pay for the miles you drive.
Their business model is explained in this must-watch Youtube video.
Consider.
- Hydrogen-powered vehicles have a long range.
- Fuelling time would be short compared to charging an electric truck.
- Are hydrogen-powered vehicles easy and low-cost to service?
- Cost of driver would be the same for operators.
- Would it be easier to recruit drivers for a hydrogen fuel-cell truck?
- Would cleaning costs be less for a hydrogen fuel-cell truck?
- Do the trucks come with sophisticated route planning software to cut mileage?
But as the video states, the upfront cost of the vehicle is higher.
I suspect the companies have driven the prices down, so that everybody gets an acceptable deal.
I wish the two companies all the best in their venture.
As I used to be half-owner of a vehicle leasing company, I feel that if the two companies can make a success of this hydrogen-powered truck leasing business, then I feel the model could be applied to the leasing of hydrogen-powered cars and other vehicles.
It could be a new way to buy your car.
Monte To Purchase 100 FC Aircraft Drives From ZeroAvia
The title of this post, is the same as that of this article on electrive.com.
This is the first paragraph.
ZeroAvia and Monte Aircraft Leasing will jointly market hydrogen-powered aircraft to regional operators. Under an agreement now signed between the companies, Monte will purchase up to 100 ZA600 hydrogen-electric powertrains from ZeroAvia to be installed on existing and new 5- to 20-seat aircraft.
Monte look to be an interesting company from their web site, which has this title.
Supporting The Transition Of The Regional Aviation Industry To Net Zero Carbon Emissions
The business model appears to be a well-proven and it is not that far removed from the one, colleagues and myself used to sell the project management system; Artemis.
In our case we took proven Hewlett-Packard computers and and other hardware, added our Artemis software and a custom-made desk and leased the systems to those who wanted to do project management, with as much support as our clients required. Customers just had to supply operators, printer paper and a thirteen amp socket.
Finance was obtained by various innovative methods, often through a bank manager, who was a bit of a rogue. But he was a rogue, who was on the side of the angels.
Later he became a firm friend of mine, before he sadly died within a few days of my wife.
Monte Aircraft Leasing’s model would appear to take a proven aircraft like a Cessna Caravan, Dornier 228 or Dash 8, replace the turboprop engines with a zero-carbon powerplant and then lease the aircraft. Often this will just be an additional lease to the existing operator.
The great advantage of this approach, is that the reengined aircraft does not need to be fully re-certified. It can fly under a Supplemental Type Certificate, which is described like this in Wikipedia.
A supplemental type certificate (STC) is a civil aviation authority-approved major modification or repair to an existing type certified aircraft, engine or propeller. As it adds to the existing type certificate, it is deemed “supplemental”. In the United States issuance of such certificates is under the purview of the Federal Aviation Administration (FAA).
Monte seem to have found a good way to make money from going net-zero.
UK Diesel-Battery Hybrid Locomotive Lease Fleet Ordered
The title of this post, is the same as that of this article on Railway Gazette.
This is a visualisation of the CBD90 from Clayton Equipment.
It certainly looks purposeful!
This is the introductory paragraph.
Beacon Rail Leasing has awarded Clayton Equipment a contract to supply 15 diesel-battery locomotives, with options for more to be ordered over three years.
These points are made.
- The locomotive is mainly for industrial shunting applications.
- These are the largest locomotives built in the UK for twenty years.
- It has an onboard diesel to charge the batteries.
- Batteries can also be charged directly from a three-phase supply.
Beacon’s CEO is quoted as saying
It was seeing increased demand for lower emissions, new technology, more capacity and cost-effective assets in a fast-changing environment.
It looks like Beacon Rail Leasing and Clayton Equipment have come up with a product that suits a lot of customers.
- Some will surely be used in mines, quarries, refineries, chemical works and steel works.
- Will some be used in large rolling stock depots, where they can provide an environmentally-friendly method of moving trains?
- Some shunting locomotives in the UK, like the Class 08 locomotive, were built in the 1950s.
- Some train operating companies have a small fleet, of these veterans.
- In Battery-Powered Shunter Ready To Begin Testing, I described how one Class 08 locomotive was being converted to diesel-electric hybrid power.
- As Beacon has interests in Europe, could some of these powerful shunting locomotive could be going for export?
- Could some end up in the large mines of Africa, Australia and the Americas?
From this article on Railway Gazette, which is entitled Steelworks Locomotive Order, it appears five CBD90 locomotives have already been ordered by Tata Steel for their steelworks at Port Talbot.
This video shows one of the locomotives under test.
I shall be interested to see, where the new shunting locomotives end up.
The Leasing Model
When we started Metier Management Systems in the 1970s and developed Artemis, which was the world’s first small and powerful project management system, we used to lease systems to our customers. These were often large engineering or other companies for whom the leasing model was very convenient.
It certainly did us well!
Rail Operations Seeks New Sites To Extend Storage Space
The title of this post, as the same as that of this article in Issue 869 of Rail Magazine.
This is the first two paragraphs.
Rail operations (UK) Limited is looking to lease more sites for storing off-lease trains.
Via ita Traxion business, the company has already leased Crewe South Yard and the Marks & Sencer Logistics site at Castle Donington.
Much of the rest of the article is an interview with Karl Watts, who is Chief Executive of Rail Operations (UK) Limited, where he outlines the train storage market. He appears to be a man, who builds a strategy around facts and then pounces.
To do this he would need to have.
- Good advisers, with excellent knowledge of and contacts in the UK Rail and European rail industry.
- Reliable financial backing.
- The ability to give a good story to the media.
It appears, Karl could have used similar tactics, when he commissioned ten Class 93 locomotives from Stadler, that I wrote about in Stadler’s New Tri-Mode Class 93 Locomotive.
He puts forward some firm views and facts.
- 4,000 vehicles are coming off-lease.
- 46-47 miles of track will be needed.
- 313s, 314s and 315s will be scrapped.
- 317s, 319s, 321s and 442s will be re-engineered.
The customer gets what they want with appropriate servicing and maintenance.
Aberdeen Standard Backs Controversial £1bn Bid For Crossrail Fleet
The title of this post, is the same as that of this article on City AM.
This has been mooted for some time and I believe that Transport for London are taking a sensible action to help get round their funding crisis, caused by three factors.
- The loss of Government subsidy.
- The lateness of Crossrail.
- Sadiq Khan’s bribe to the electorate of a fare freeze.
I also think, that this will be advantageous to London in the long term.
This is a paragraph in the article.
TfL would be able to terminate the 35-year lease in 2020, 2025 and 2030, through a break clause, with an ability to acquire the fleet for just £1 in 2044. TfL will announce the winner at the beginning of next year.
Depending on how TfL’s finance progress in the next few years, the break clause may allow them to cancel and acquire new trains, if they felt it best.
But all these trains need a rebuilding at someyime around twenty years old and this will surely be the responsibility of the leasing company.
TfL To Sell And Lease Back Elizabeth Line Fleet To Finance New Deep Tube Trains
The title of this post is the same as this article on Global Rail News.
Transport for London (TfL) is under financial pressure for various reasons and desperately wants to order new trains for the Piccadilly Line.
- The current 1973 Stock trains entered service in 1975.
- 87½ six-car trains were originally ordered.
- Train technology has moved on in over forty years.
- The new trains will be walk-through, lower-weight, energy efficient trains with air-conditioning and wi-fi.
- The trains may have batteries to handle regenerative braking and power failures.
When the 1967 Stock trains on the Victoria Line were replaced, the new fleet had a similar number of 2009 Stock trains.
So will TfL order 87½ trains again?
According to the November 2017 Edition of Modern Railways, this is proposed.
- Ordering a hundred trains.
- Installing new signalling.
- Increasing frequency from 24 to 33 trains per hour.
This would give a capacity increase of 60 %.
The five pre-qualiofied bidders were Alstom, Bombardier, CAF, Hitachi and Siemens. However since this was announced, the following has happened.
- Bombardier and Hitchi are submitting a joint bid.
- Alstom and Siemens have merged their rail transportation businesses.
As the order could lead to a total of 250 new trains, I suspect competition will be keen.
I can understand why, TfL are leasing the Crossrail trains to raise money for the purchase.
I would assume that TfL will lease the new Piccadilly Line trains, just like they lease the London Overground trains.
Some might think, that the trains should be purchased outright!
That means TfL would need to raise a lot of money up front.
- What also helps is that trains are an asset that last a long time, with many still being in peak condition at forty years old.
- So institutions with large amounts of cash assets like Pension Funds find trains a good place to use money to create an income for beneficiaries.
- Given that rolling stock and especially electric trains are good for the environment, it could be considered an ethical investment.
Various models are used by different transport authorities, with Merseyrail actually buying the trains and then leasing them to the train operating company.
Legal & General To Invest £350m in UK Rail Infrastructure
The title of this post, is the same as this article on Railway Technology.
Wikipedia says this about Legal & General.
The company offers a wide range of products for individuals and corporate businesses. Its investment management is the UK’s largest investment manager of UK pension fund assets and has a growing US business, based in Chicago, Illinois.
So in a few years time, your pension might own a couple of nuts and bolts on a train.
The Anonymous Widower 