Sunderland firm in line for £110m turnover

Feb 16 2010 by Karen Dent, The Journal

A NORTH East company taking advantage of the growing green energy market is aiming for a £110m turnover in only its third year of trading.

Clean Energy Capital plc (CEC) is the brainchild of Northumbria University graduate Sean O’Connor, who previously worked in the property market before deciding to grab a piece of what he believed would be the next big thing.

The Sunderland-based business, which also has offices in Leeds and London, raises money for green energy research then trades the power produced by the projects it has funded.

Mr O’Connor, 29, said: “I just felt the green market had the potential. But with all new things, people are trying to figure out how to profit from it. The big issue was a lot of people have made money in various other industries who were also like I was, thinking green was the way to go.

“The gap was people wanted to invest in the sector but didn’t understand it. The scientists there probably weren’t the best people to commercialise the concept. So we raised money for a portfolio of research projects.

“You end up funding projects that are energy-related but you have this commodity – electricity, gas, fuel and carbon credits – so we diversified into energy trading.

“There are two parts – one, securing funding and two, energy trading.”

CEC made a £1.2m profit last year but is raking in around double that each week in turnover from the trading wing.

Mr O’Connor said: “The turnover has gone through the roof because of the trading side. The energy trading is currently over £2m a week, but it has a very small margin.

“Our trading arm buys and sells power as well as carbon credits between the major banks and the companies that are regulated to reduce emissions, providing liquidity and helping them to achieve emissions reductions.”

The business, which employs one person in London and 10 in the Sunderland headquarters and Leeds office, has funded research in the UK, Latin America, Middle East and US.

Money raised from institutional and individual investors has been used for projects converting waste into energy, desalinating water, biofuel farms and research into eco towns aiming to create their own energy supply.

Mr O’Connor is keen to attract more investors from the North East because of the region’s reputation as a leading light in this developing sector.

“It (the funding) is from people from all over the country. I would like to involve more people from the very strong community in the North East who are very wealthy and have done very well in other sectors,” he said.

“The North East is very cutting edge towards the green sector. The councils are very forward thinking when it comes to green issues.”