Wind turbine firm spirals into liquidation
Concerns voiced over huge community investment
by Sean Rooney
The company behind Neilston’s Community Windfarm plunged into liquidation
this week, throwing doubt over millions of pounds of investment funding.
Carbon Free Developments declared voluntary liquidation, prompting MPs and
members of the community to question the security of long term investments.
However, a spokesman said the revenue stream for the windfarm had nothing
to do with the company and insisted the funding would continue through
Neilston Development Trust as planned.
West of Scotland MSP Jackson Carlaw was one of the first to speak out on
the issue.
He said: “This is a worrying turn of events which could have a considerable
knock-on effect for many in Neilston who have invested heavily in the
Neilston Community Windfarm. “Great hopes of investment and benefit to the
community were dependent upon the success of this joint venture. Residents
will rightly be concerned for their investment and that this voluntary
liquidation has been kept very quiet to date. I intend to write to the
appointed liquidators to clarify the situation and try to ensure the best
result for the local community.”
Neilston Development Trust raised a substantial amount of money trhough
borrowing and other sources to purchase the community stake of 28 per cent
in the four turbine windfarm on the village’s Kingston Road.
The Co-operative Bank provided 80% debt against a project capital
expenditure of £15,600,000 and therefore to realise their potential 49.9%
share in the project, NDT was required to source up to £1.5m
equity. Through loans from Social Investment Scotland, Charities Aid
Foundation, Big Issue Invest and West Scotland Loan Fund, NDT was able to
secure £950,000. This equates to 28.3% share in the windfarm.The
development consists of four 110m high structures south west of
Neilston. The electricity goes into the national grid.
In the last year, figures show the turbines have been operating around 20
per cent efficiency, below a prediction of 38 per cent.
A spokeswoman for Carbon Free Developments said: “A member’s voluntary
liquidation is the voluntary liquidation of a solvent company. “Carbon
Free Developments is a solvent company that was put into member’s voluntary
liquidation by its shareholders earlier this year. The company was not
struggling, rather, due to the sale of several of its businesses, the
company became surplus to requirements.
The member’s voluntary liquidation of Carbon Free Developments has no
impact on the windfarm, Neilston Development Trust or the community’s share
of profits from the windfarm.
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