Nottinghamshire AD plant secures £13m funding
More than £13m in funding has been committed to a new anaerobic digestion (AD) plant in Nottinghamshire, UK, that will generate renewable energy.
The new facility at Stud Farm in Rufford will use poultry litter, straw, and other agricultural feedstock from adjacent farms to fuel a combined heat and power (CHP) plant, supplying electricity and heat to local businesses. Any surplus electricity will be supplied to the UK grid.
Construction of the 2.2MW facility, to be developed and operated by Future Biogas Limited is now underway.
The Foresight-managed Recycling and Waste LP (RAW) Fund, in which UK Green Investment Bank plc (GIB) is a cornerstone investor, has committed £6.6m to the project, with SQN Asset Finance Income Fund matching that sum to take the total investment in the project to £13.2m (€15.3m).
The RAW fund was launched in February last year to provide direct funding towards small-scale recycling and waste projects around the UK.
The facility is expected to generate approximately 16,300 MWh of renewable electricity each year, sufficient to power nearly 4,000 households, while cutting greenhouse gas emissions by approximately 6,900 tonnes of CO2 equivalent per annum, equivalent to removing 3,200 cars from the road for the lifetime of the project.
The plant will also generate 16,000 tonnes per annum of a recycled digestate bi-product, to be used as compost on local farms. All of the facility’s feedstock will be sourced locally.
Edward Northam, head of Investment Banking, UK Green Investment Bank, said: “Anaerobic digestion is widely recognised as one of the most effective ways of processing organic waste. AD facilities have an important role to play in the development of a circular economy in the UK.”
Nigel Aitchison, Partner, Foresight, said: “At Foresight we are continuing to find attractive small-scale AD projects that are making a lasting difference to the communities they serve while generating attractive returns for our investors.”
Neil Roberts, managing director, SQN Capital Management, said: “Since the SQN Fund’s IPO in July 2014, renewable projects have formed a meaningful part of our diversified portfolio. This is our fourth joint financing with the RAW fund which fit well with our key investment criteria of financing business essential, revenue earning assets with high in place value.”
