More than £13m in funding has been committed to an anaerobic digestion (AD) plant in Nottinghamshire.
The Future Biogas facility at Stud Farm, Rufford, will use poultry litter, straw and other agricultural feedstock from adjacent farms to fuel its combined heat and power (CHP) engine.
It is expected to generate around 16,300MWh of renewable electricity each year, supplying local businesses and the UK grid. Heat will also be supplied to local businesses.
Future Biogas’ 2.2MW plant will also generate 16,000 tonnes a year of digestate for use as a fertiliser on local farms. All of the facility’s feedstock will be sourced locally.
The Foresight-managed Recycling and Waste (RAW) Fund, in which the Green Investment Bank (GIB) is an investor, has committed £6.6m to the project. SQN Asset Finance Income Fund matched that sum to take the total investment in the project to £13.2m.
Foresight partner Nigel Aitchison said: “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.”
The RAW fund was launched in February 2015 year to provide direct funding towards small-scale recycling and waste projects around the UK.
Edward Northam, GIB head of investment banking, said: “AD 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.”
Neil Roberts, SQN Capital managing director, said: “This is our fourth joint financing with the RAW fund, which fits well with our key investment criteria of financing business essential, revenue earning assets with high in-place value.”
Thöni provided technology for the AD plant and Clarke Energy did so for the CHP facility.
- This article was updated on 23 August