A solar energy project developer backed by the parent company of Thames Water is to be put into voluntary liquidation, according to a report.
Trinzic Operations, owned by Thames’s parent company Kemble Water, is to be shut down within weeks, with the water group seeking to recoup at least £25 million from the business, the Guardian reported.
Trinzic planned to develop floating solar power panels to generate power from the Thames as the water company looked to find other sources of income.
Thames reportedly said it would not provide more funding after investors backed out of a £500 million equity injection in March.
The Guardian quoted a Thames spokesperson who said that Kemble was “urgently” attempting to recover funds from Trinzic with its financial consultants Alvarez & Marsal.
Thames Water published results for the year to March last week showing £15.2bn of debt, adding it has enough cash to keep going for a further eighteen months.
Regulator Ofwat has put the company into special measures due to its cash situation, with nationalisation an option if it runs out of money.
Trinzic was set up as Thames Water Ventures in 2021 under the stewardship of Tony Vasishta, a former executive at the telecoms company Liberty Global (NASDAQ:LBTYA), according to the report.
It had launched a campaign calling on the UK government to back 30GW of floating solar installation by 2030, through a mix of policy reform and grant incentives.