A new anaerobic digestion plant in Nottinghamshire that is capable of generating renewable energy has secured a funding of more than £13.2m.
Funding for the project has come from the UK Green Investment Bank-backed Foresight-managed Recycling and Waste LP (RAW) Fund and the SQN Asset Finance Income Fund.
UK Green Investment Bank investment banking head Edward Northam 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.”
The 2.2 MW-facility is being constructed at Stud Farm in Rufford. It will be developed and operated by Future Biogas and is expected to generate around 16,300 MWh of renewable electricity each year.
The renewable electricity from the plant can sufficiently power around 4,000 households.
The renewable energy facility is expected to reduce greenhouse gas emissions by around 6,900 tonnes of CO2 equivalent per annum for the lifetime of the project.
SQN Capital Management managing director Neil Roberts 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.”
The plant will be fueling a combined heat and power (CHP) plant by using poultry litter, straw along with other agricultural feedstock sourced from adjacent farms.
About 16,000 tonnes per annum of a recycled digestate bi-product coming from the anaerobic process of the plant will be used as compost on local farms.
The generated electricity and heat will be supplied to local businesses while any surplus electricity is to be given to the UK grid.