Key Information
- SectorHeating and agriculture
- StrategyRenewable energy infrastructure
- SDG*9, 13
- Ownership95% Schroders Greencoat
Low carbon greenhouses
Pioneering greenhouses that take a step towards reducing the carbon footprint of food production
InfrastructureUnited Kingdom
2019
Year of investment
£137 million
Size
United Kingdom
Geography
About
Since 2019, Schroders Greencoat invested £137 million in the construction of two large-scale agricultural greenhouse projects in Norwich and Bury St. Edmunds in East Anglia. These projects implemented the largest heat pumps ever installed in the UK, which utilise waste heat from nearby water recycling centres. This innovative approach reduces the carbon footprint by 75% compared to traditional European methods and enhances food security within the UK1. The Bury St. Edmunds greenhouse is the largest single-block greenhouse in the UK, and produces over 100,000 peppers each week for both domestic and international markets.
Why we invested
We recognised the significant environmental impact of the heating and agriculture sectors, which have been slow to decarbonise despite their considerable carbon emissions. Our investment in these pioneering greenhouses represents a crucial step forward in reducing the carbon footprint of food production.
Our team of specialists identified this project as an innovative model that leverages the Renewable Heat Incentive, an inflation-linked subsidy from the UK government aimed at promoting sustainable energy solutions. As governments around the globe set ambitious targets and implement supportive policies for a green transition, combined with the decreasing costs of renewable energy technologies, we saw a compelling opportunity to invest in this site.
1Schroders Greencoat, as at November 2024.
Value creation
Our team of experts in value creation recognised the potential of this project. We collaborated with Anglian Water, which supplies the necessary source heat from two of its sites outside Norwich and Bury St Edmunds. This strategic partnership enabled us to optimise the use of cutting-edge technology in our investment. Through our dedicated efforts, we have created around 360 permanent new jobs across both regions, alongside an additional 120 seasonal positions.
Sustainability
The greenhouse project epitomises Schroders Greencoat's commitment to advancing renewable energy infrastructure and accelerating the green transition. The utilisation of waste heat from a local wastewater treatment facility significantly diminishes the carbon footprint associated with growing peppers, while the site's proximity to end markets ensures efficient supply chains and minimal food miles, bolstering sustainability efforts.
Moreover, investments like this one benefit from the Renewable Heat Incentive, further supporting our commitment to sustainability. Overall, these greenhouses illustrate how strategic renewable energy investments can facilitate the green transition while addressing diverse client needs. With the global push for ambitious environmental targets and the continuous progression in renewable energy technologies, we see ample opportunity for further investments in sites like these greenhouses.
*The United Nation's 17 Sustainable Development Goals ('SDGs') provide a framework for sustainable development. SDG ratings evaluate a company or project’s alignment with these goals, www.sdgs.un.org/goals
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