Helping Smithy Mushrooms to decarbonise Lancashire HQ

As part of ambitious targets to reduce utility spend, secure energy supply and cut carbon emissions, Smithy Mushrooms partnered with AMPYR Distributed Energy (ADE) to install a 224kW rooftop solar array at its Lancashire production facility. With the project completed in just a matter of weeks, the site is now benefiting from clean, green, behind-the-meter (BTM) renewable energy. 

Situated on the outskirts of Ormskirk, Smithy Mushrooms is a leading producer of exotic mushrooms. Renowned for growing a wide range of specialist varieties, including shiitake, oyster, lions mane and shimeji, the horticultural firm is a major supplier to Marks & Spencer, Booths and Tesco.

As one of Europe’s only dedicated exotic growers, the business helps grocery retailers to avoid the high shipping costs and intensive food miles associated with international suppliers in south-east Asia, while at the same time guaranteeing absolute product freshness and right-on-time delivery. As a result, demand is soaring and the business continues to expand.

Its state-of-the-art production facility, which was completed in 2024, has now been operational for more than 12 months. The expansive site, which was purpose built for growing specialist mushroom varieties, houses the company’s entire business operations – from production, storage and goods in/out, to sales, marketing finance and HR.

While leveraging sustainable construction materials and the latest environmental building techniques, its substantial size, as well as its requirement to maintain around-the-clock hot and humid growing conditions throughout the seasons, mean that the site’s energy use is extensive. With utility bills soaring and prices in the energy market remaining volatile, an innovative approach was needed to tackle escalating running costs.

Having explored a wide range of alternatives, the Smithy Mushrooms team decided to invest in BTM renewable energy generation technologies and looked towards ADE to install rooftop solar through its innovative power purchase agreement (PPA) model.

With an experienced team, the backing of by AGP Sustainable Real Assets and £300m of total capital available to deploy on decarbonisation projects, ADE has worked with businesses across the UK and Europe to reduce energy costs and accelerate their progress towards net zero. Unlike many solutions, ADE’s innovative PPA model provides access to distributed energy solutions with zero upfront cost and long-term peace of mind.

Working in partnership with specialist renewable installer Microgen Energy Ltd, ADE facilitated the deployment of a 224kW rooftop solar array capable of generating 180MWh of electricity per annum. Despite poor weather conditions, the entire project – from contract sign to commissioning – was delivered in less than four weeks. Meticulous planning and experienced project management meant that the business felt no operational disruption.

Thanks to the new solar array, the business has already projected a c.£23,000 reduction on its annual energy bills. The team were so pleased with the installation that a second phase of the project, which will see a second 224kW array added to site, has been agreed and will complete during the spring.

John Dorrian, Director of Smithy Mushrooms, said: “When we developed our pioneering facility, we knew that identifying an innovative solution to tackle our energy consumption would quickly become a priority. Working with ADE to install such an impressive rooftop solar array with no upfront costs was an absolute game-changer – we’ve been able to reduce our energy spend, decarbonise our operations and highlight to our clients that their mushroom producer is taking the necessary steps to tackle Scope 2 emissions.”

Miles Thomas, Chief Commercial Officer at ADE, added: “This project is a fantastic example of how PPA-funded renewables can revolutionise business operations. Being able to deliver a 224kW solar array with zero upfront cost and no impact to the day-to-day running of a busy site has allowed Smithy Mushrooms to immediately embrace the benefits of behind-the-meter renewables and deliver upon its sustainability targets.

“As well as reducing energy spend and minimising carbon emissions, we’ve helped the business to take a major step forward on its journey to net zero – a major selling point for existing and prospective clients. Thanks to the experience and expertise of Microgen Energy, the whole process was seamless. Collectively, we’re looking forward to delivering the second phase of the project over the coming months.”

For more information about our innovative PPA funding model and how AMPYR Distributed Energy can help your business, contact us.