The investment comes from the Platina II buy-out fund, one of six funds the business currently has under management. TAG also received £3m of grants from the Department for Energy and Climate Change and One North East.
Platina, a private equity firm specialising in renewable energy and special situation buy-outs, was supported in the move by ETF, a venture capital firm focusing on opportunities in the cleantech sectors.
TAG Energy Solutions has redeveloped the Haverton Hill shipyard on the River Tees in Cleveland and will operate a manufacturing facility that will roll and weld large steel cans that are then assembled into so-called ’monopile’ and ’jacket’ foundation structures to support large offshore wind turbines.
It will have an initial capacity of 84,000 tonnes of steel per year and scope for additional expansion. The facility will also create up to 400 jobs.
Sam Goss, senior investment manager at Platina, said: ’The supply chain for offshore wind and other renewable energy technologies is an area of particular interest for Platina buy-out funds. The UK’s Round Three for offshore wind will create huge opportunities and we’re delighted to have invested in the country’s first offshore wind foundation manufacturer to have its own tubular can rolling capacity.’
Patrick Sheehan, partner with ETF, added: ’Currently, 80 per cent of the materials and services involved in constructing an offshore wind farm are imported. With the growth of the UK wind industry, wind farm developers now need an efficient local supply chain and TAG will benefit from this trend.’