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Not waiting around furlong

Funding a heat pump to fuel UK racehorses

Chris Russell

Business Development Shawbrook Bank

Afamily run farming businessfamed for its organic milk, hay and straw production, AW Brandreth & Sons, was seeking to diversify its business by implementing a £1.6 million 4Mw Ground Source Heat Pump (GSHP) as it looked to supply high-quality feed to the UK’s racehorse industry.

The Warwickshire-based, third generation farming partnership has invested in the GSHP to dry Lucerne hay, which is in demand from the UK’s equestrian industry where it is used to provide energy, good quality protein and a source of fibre to the specialist diet of performance racehorses.

Our specialist agriculture and renewable energy team here at Shawbrook Bank were able to provide the funding facility to AW Brandreth to finance the project, with the GSHP pump installed by Omi Heat and Power Ltd. We were introduced to this project by Justin Amos of Portman Asset Finance.

After being approached by Justin and the team, we quickly realised that this was a superb opportunity for the business and one that we whole-heartedly supported.

This was Shawbrook’s first heat pump project of this size and it came with several potential challenges, as most project finance transactions do. But by working closely with Justin and his team, we were able to work through those obstacles and put a facility together that will help AW Brandreth further diversify and protect their business for the future.

Sixty acres of Lucerne seed has been planted already which is scheduled for harvest in August. The heat produced by the new GSHP will also be used to produce organic dairy grade Lucerne hay as well as other forms of straw and hay.

Joe Brandreth, of AW Brandreth & Sons, shared his feedback with us: “Shawbrook understood the long-term value that the GSHP would provide our business by unlocking the Lucerne hay opportunity for us.

“As a specialist lender, Shawbrook offered us a facility that was ideal for the project and the dynamics of our business. We are really pleased to be working with them and looking forward to seeing how the investment in GSHP will help us unlock a new market and grow AW Brandreth for the future.”

AW Brandreth & Sons is a family-run farm business consisting of almost 600 acres of owned and rented land. The farm has 140 dairy cows producing organic milk with a long-term milking contract. Its other main income is driven through its hay and straw business, where they produce swaths of hay which is then baled and stored then sold to clients in the UK and Europe.

The project now means AW Brandreth & Sons qualify for the commercial Renewable Heat Incentive (RHI), a government financial incentive to promote the use of renewable heat. “ By working closely with Justin, we were able to work through those obstacles and put a facility together that will help AW Brandreth further diversify and protect their business for the future