Construction firm Kier has announced a £24.4m investment in anaerobic digestion company BiogenGreenfinch.
Kier will take a 50% stake in the AD manufacturing and operating company alongside its existing owner Bedfordia Group.
Kier’s investment will comprise a mixture of preferred and ordinary equity; £5.4m was invested on completion of the deal and a further 2.5m will be invested in July 2013.
The remaining £14m is scheduled in instalments over the next four years to finance new plants.
Biogen’s current management team and operation team will remain in place. They have been granted options over the company’s shares.
A statement by Kiet to the London Stock Exchange said as of 30 June 2012 Biogen had gross assets of £15m. It made a pretax loss of £1.7m in the year to December 2011 following “significant investment”.
The statement said following an initial investment phase, Kier expects the return on capital to exceed 15% and for the firm to be operating nine plants by 2017.
Paul Sheffield, chief executive of Kier Group plc, said: “We see significant potential in an attractive market for the development of the business in the coming years.”
John Ibbett, chairman of Bedfordia Group plc, said: “Part of Biogen’s long-term strategy has been to identify a partner with which we can develop the proven commercial viability of our own AD technology. The joint venture will now be able to expand its network of plants across the UK, making clean green energy from food waste available to more end-users.”