Renewable energy investment firm Solar 21 was expected to repay Irish investors more than £57m in one of its key projects by the end of last month, significantly more than recently released financial reports indicated.
When asked how much has been repaid since then, the firm declined to say, but said efforts to refinance have faced “various pressures,” including the war in Ukraine.
In February the Sunday independent revealed Solar 21 was looking for “financing solutions” after delaying the repayment of promissory notes as they came from Irish investors from whom it had raised €250m for a now-delayed renewable energy project.
The energy-from-waste plant the Irish company is developing in Melton, East Yorkshire has been delayed by “unprecedented” challenges including Brexit and Covid. In February, the company told this newspaper that repayments of €10 million to its investors had been delayed at the time.
“In the unlikely event of a prolonged delay of more than 24 months, the assets of the fundraising and project companies may be used to settle the liabilities,” the brokers warned in a memo.
Responding to inquiries over the past few days, Solar 21 CEO Michael Bradley said the war in Ukraine has added to the complications faced in finding a financing solution to fund the repayments to investors.
“Progress continues, but the market has faced various stresses, including the war in Ukraine,” he said.
Bradley said the company “remains committed to finding a suitable financing solution for EFW21 Project 1,” a reference to the East Yorkshire scheme.
Financial accounts filed last week for Solar 21’s project company, EFW 21 Renewable Energy Ltd, showed that as of 30 April 2021 investors were owed £18.6m within one year, of which £16.1m £ in interest were payable.
Asked how much was paid during the year and how much was now due, Bradley said, “We are not at liberty to discuss the details of the investments, which are subject to ongoing negotiations.”
In a subsequent statement, Bradley said: “It appears that there has been an administrative error in the figure provided in relation to liabilities due within one year (in the 12 months from 30 April 2021). Whilst the overall position shown in the accounts is correct and remains unchanged, the amount due within one year (from 30 April 2021) is £57,354,082. This will be addressed promptly with the CRO.”
