P3P Partners has secured £10.6m in funding from Santander Corporate & Commercial to support the construction and operation of a new North Yorkshire energy centre.

The new-build centre in Selby is being built to support one of the UK's largest tomato and pepper growers and will sit adjacent to an existing commercial glasshouse.

The new centre will produce heat and carbon dioxide, which is sold to the glasshouse, and electricity which is exported to the national grid.

Along with the £10.6m in funding, Santander Corporate & Commercial is also providing day-to-day banking services as well as risk mitigation strategies through the bank's specialist derivatives and foreign exchange teams.

Julian Harris, partner at P3P Partners, said: "We believe that P3P offers a compelling proposition for any UK business looking for cost-effective energy solutions and has strong aspirations for future growth. We are seeing increased demand for innovative energy solutions and the initiative in Selby, a new project for an established client, is a testament to our business model and vision."

Mark Cumbo, director, infrastructure and renewable energy, Santander Corporate & Commercial, added: "Our long-term structured debt solution will allow P3P to deliver secure and competitively priced heat, CO2 and electricity solutions. This transaction not only supports our client but also UK food growers and the increase in home grown produce."

The deal was supported by legal adviser Osborne Clarke and by technical adviser Arup.