NPIF Debt

Loan will help energy infrastructure firm take on bigger projects

A Grimsby-based engineering company that supports energy infrastructure has secured a £250,000 loan from NPIF – Mercia Debt Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund, to help it continue taking on bigger projects.

Technica serves all the major gas distributors including National Gas Transmission, SGN, NGN, Wales and West Utilities, Centrica and Gassco. It works on upgrades to existing plants and the installation of new infrastructure to provide security of energy supply, as well as assisting in the drive to net zero.

The company, which was founded in 2007, has increased turnover by over 300 per cent in the past two years as a result of a number of major contract wins and has also increased staff numbers from 40 to almost 60. The funding will enable Technica to increase capacity at its existing premises and provide additional working capital.

John Davison, owner and co-founder of Technica, said: “Over the last two years, Technica has supported two of the largest and most complex projects in its history which has seen the business grow rapidly. New developments such as renewables, hydrogen and carbon capture promise exciting times ahead for our sector. However projects of this nature require large cash reserves. The support from Mercia and NPIF will enable us to take on more large projects over the coming year and continue growing the business.”

Rebecca Pickering of Mercia added: Technica helps support the UK’s energy infrastructure and, with the switch to renewables, is set to play an important role in the energy transition in the years to come. The business has undergone a step change in recent years. The funding will help it meet the demand for its services and pursue new opportunities ahead.”

Debbie Sorby, Senior Manager at British Business Banks, said: “Supporting businesses that are driving forward the shift to net zero is a key strategic area for the Northern Powerhouse Investment Fund. Northern businesses like Technica will play a huge role in delivering this goal, and with the support of funds like NPIF, they can now kickstart large scale projects that create a real difference. The future of energy security is a priority not just for the UK, but for all countries, so it is fantastic to see small businesses in the Northern economy playing their part.”

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.