Emerald Biogas has finalised an £8m deal for an AD facility in county Durham.
The plant has secured funding from HSBC, WRAP and the Rural Development Programme for England, and will be the North East’s first commercial food waste AD facility, according to the company.
The first phase of plant, which is at Newton Aycliffe Industrial Estate, will process up to 53,000 tonnes of food waste per year collected across the region. It will produce 1.4MW, enough to power almost 2,000 homes.
The excess heat generated will also be used across the industrial estate where the facility will be located. The resultant digestate will be supplied to land owners within a ten-mile radius.
Emerald Biogas is led by Antony and Adam Warren, owners of food waste collection and recycling business John Warren ABP, and Ian Bainbridge of farming resource management and plasterboard recycling business, Agricore.
Bainbridge said: “We expect the AD plant to be up and running in mid 2013 and have ambitious targets in terms of further energy production capacity and are committed to ensuring the facility delivers tangible benefits to Aycliffe Industrial Estate and to the wider community.”