South Yorkshire renewable energy firm experiences 50 % increase in turnover

A South Yorkshire-based renewable energy company, which specialises in biomass technology, has seen a 50% increase in turnover in just its second year.

Regional Energy designs, installs and maintains biomass systems for hotels, country estates, farms, leisure centres, private homes and rural businesses across the UK.

Biomass generates heat by burning organic materials such as wood chips or pellets from sustainable sources.

The energy company, based near Penistone in Barnsley, was established in june 2013 by a team of three directors, Ian Sowerby, Dave Shaw and Gary Hague, each with more than 15 years of experience in the renewables industry.

With sales totalling £950k in the company’s first year of trading, the trio have now grown sales to £1.4m at the end of the second financial year, and employ a team of 20 engineers and installers.

Regional Energy was set up largely in response to the introduction of the Renewable Heat Incentive (RHI) scheme, which was also introduced in 2013. This initiative is similar to other feed-in tariff schemes for electricity generation, but rewards people for generating their own heat.

The Government introduced the RHI to boost the renewable energy market and help the UK meet its CO2 reduction targets set out in the 2005 Kyoto treaty. The scheme is issuing hundreds of incentive payments now, but may be wound down in future years.

Gary Hague, Regional Energy business development director, said: “Now is a great time to act. The RHI means green energy can help businesses generate profits as well as save money on heating. It’s a win – win.”

In Yorkshire, Regional Energy has installed biomass boilers at Hovingham Hall near York to heat 50 cottages and business premises on the estate; and Carlton Towers country house near Selby, to heat a range of facilities including a business centre housed within the former coach house.

The company has also supplied biomass boilers to heat toilet and shower blocks at Wood Nook caravan park near Skipton and a sports and leisure centre in the Woodland Glade residential community near Huddersfield.

Mr Hague also commented: “We have seen phenomenal growth in a growth industry and aim to increase turnover again by another half million in our third year.

“Renewable energy and particularly biomass are becoming increasingly important options for property owners and developers faced with the rising costs of fossil fuels and the growing need to develop sustainable alternatives.

“We are at the vanguard of this movement and our expansion has been built on our reputation. We’ve grown largely through word of mouth recommendations.

“For example, our biomass boiler system at a hotel in the Yorkshire Dales led to an enquiry from a garden centre owner in Essex who had stayed at the hotel and got talking to the owner.”

Mr Hague added: “Biomass is a particularly good option for large, draughty properties and buildings in rural areas off gas mains supply which have traditionally had to rely on oil or LPG (liquified petroleum gas) for heat. We estimate these customers can save up to 70 per cent on their heating bills through biomass.

“And now is the time to invest in biomass because as well as providing a long-term, reliable and cost-effective heating solution, people can also earn money through a generous government incentive scheme to encourage people to develop green technologies.”