A huge energy firm that just secured a £60million taxpayer-backed loan is preparing to appoint administrators. Hive Energy, a solar energy firm, was awarded the loan to ramp up its solar projects across Europe, North America, the Caribbean, South America and Africa less than four months ago.

It was announced last November at the UN’s COP30 climate conference and was backed by Tim Reid, the chief executive of the UK Export Finance Agency (UKEF), who said he was “proud” to support British businesses such as Hive. However, this week Hive issued a “notice of intention to appoint administrators” with law firm DLA Piper as its legal advisors, reports The Times.

When companies appoint administrators, it suggests they are on the brink of collapse. This could signal that taxpayers’ money will be lost in a black hole if the company becomes unviable.

A Hive Energy spokesman stressed that it would not change day-to-day operations, it continues to trade under the control of its existing Board and management team, and that it was a “longstanding and fundamentally strong business”.

However, it admitted it had experienced “creditor pressure” regarding Ethical Power, a company for which it had been a long-term investor.

Ethical Power develops, builds, and operates solar and battery storage projects across the UK, New Zealand, and Europe, but Hive said it had recently undergone a restructuring, which led to this pressure.

The spokesman said the Board had filed the Notice of Intention to “provide a short period of statutory protection and stability”.

Hive Energy was started by Giles Redpath in 2010 to supply green energy to the UK, and it is now established in more than 20 countries.

According to its latest company accounts for March 2024, it generated a £7.2million turnover in 2024, up from £5.9million in 2023. 

However, its operating loss was £29.4million, nearly three times the £10.4million in the financial year to March 2023. Pre-tax profits had also plummeted, from £21.2million in 2023 to £7.1million in 2024.

The spokesman added: “This process does not mean that the business has entered administration or that it will enter administration, but rather provides time and stability to explore strategic options in an orderly manner.

“This is not a decision to cease trading, and it does not change our day-to-day operations or the ongoing development of our projects.”

Ethical Power said: “Ethical Power is not affected by these actions as Hive Energy is a shareholder and not a parent/holding company. Ethical Power continues its operations, delivering projects and receiving payments from clients.”

A UKEF spokesperson said: “UKEF operates at no net cost and applies rigorous risk criteria to its transactions to ensure they are sustainable and protect taxpayers.”