Foresight Group has announced that Recycling and Waste LP fund has invested £2 million alongside co-investment of £2m by SQN Asset Finance (Guernsey) Ltd.to build an on-farm anaerobic digestion (AD) plant at Old Quarrington, Durham, England.
The recently announced £50 million Recycling and Waste LP fund is backed by the UK Green Investment Bank plc (GIB).
The anaerobic digestion plant takes organic matter and breaks it down, producing a gas which is turned into electricity. This power will be exported to the national grid. The process also creates digestate, a natural by-product which can be spread on the land as a fertiliser. The generated heat will be used by an adjacent woodchip drying facility, creating an extra revenue stream for the farm.
Throughout its 20 year lifespan the project will generate 3,400 MWh electricity, enough renewable energy to power 800 households, and 3,300 MWh heat. The plant will receive revenue under the Feed-in-Tariff (FiT) and Renewable Heat Incentive (RHI) schemes.
Although the first investment made by Foresight’s RAW fund, which targets smaller-scale recycling and waste projects across the UK, this is the third such project supported by Foresight and GIB.
Williams Industrial Services, who developed with Foresight the two Northern Ireland projects, will be responsible for constructing the plants under an EPC contract, as well as providing ongoing maintenance services.
Charles Sheldon, Investment Analyst, Foresight Group, said:
We’re thrilled to announce the first investment by the RAW fund. The short time taken from the announcement of the fund to the completion of the first investment is a significant achievement and is a reflection of the volume of pipeline for Anaerobic Digestion and the demand in that sector.