Updated: 1st April 2016
A Liverpool-based renewable energy company called H2 Energy has been entered into administration less than three years after opening its first operating facility in the city.
The company had been hoping to grow and create dozens of new jobs in the North West over a period of several years after opening a plant at Wellington Business Park in December 2013.
However, its business, which is based on offering services relating to a process that converts organic waste into renewable energy, has run into serious financial difficulties in recent months and administrators have now been called in to manage its affairs.
The hope initially was that H2 Energy would be able to help grocery retailers and private households to access an environmentally-friendly means of disposing of food waste on a large scale.
“This is about jobs, opportunity and growth. It means Liverpool is at the cutting edge of new technology and sustainability in terms of the environment,” said Liverpool Mayor Joe Anderson as he opened H2’s facility in 2013.
Unfortunately, despite receiving funding from the Liverpool City Council and developing technologies that specialise in “advanced conversion” processes, the business has been unable to avoid a position of insolvency.
Reports from the Liverpool Echo suggest that the renewable energy operator has been unable to overcome sustained pressures on its cash flow and will now be looking into its restructuring options.
There were understood to be a total of 75 people employed by the company at the point at which administrators were called in.
While those jobs could be in jeopardy, there are hopes that directors will succeed in finding a restructuring strategy that works for the business going forward and allows it to recover from what is currently an unsustainable financial position.
In April 2015, H2 Energy announced that it had appointed KPMG, the international accounting and auditing group, as a provider of business advisory services.
This appointed was welcomed at the time by the company’s chief executive William Shotton as being a “key strategic appointment” that could be important in the Liverpool business’ pursuit of “expansion into a number of overseas markets”. We have an extensive network of 100 offices offering confidential director support across the UK.