- Farm waste and dairy residues to produce “green” biogas for residential & industrial customers
- £15m investment from Iona Capital’s LP3 Environmental Infrastructure Fund
Iona Capital (“Iona”), a specialist investor in low carbon infrastructure, has financed the construction and operations of a new 8.8MWth anaerobic digestion plant located in Dumfries and Galloway, Scotland.
The plant has pre-qualified under the Non-Domestic Renewable Heat Incentive (RHI) which was introduced in 2011 to incentivize the uptake of renewable heat in industry and businesses. Biomethane injection to the grid is making a significant contribution in meeting the Government’s renewable heat targets.
The principal feedstock will be waste slurries generated from local dairy and beef farming operations, underpinning the plant’s compliance with OFGEM’s revised targets on sustainability.
The plant will have the capacity to generate 8.8MWth of base load renewable energy, which is sufficient to heat circa 7,000 households on an annual basis. The plant is being built by Bioconstruct GmbH, one of the leading European AD equipment suppliers. The biomethane will be upgraded into the local gas distribution network that is controlled by Scotia Gas Networks.
The UK has set ambitious targets for renewable energy – 20% of the country’s energy generation by 2020 should be “green” power. Since its launch in 2011, Iona has financed 21 renewable energy projects in England, Scotland and Wales, all of which supply energy to the local grid networks. This latest project follows on from two earlier successful Biomethane to Grid projects completed in Scotland: at Keithick and St Boswells. The three plants will have a combined capacity in excess of 20 MW and provide significant operational synergies.
The investment has been made from Iona Capital’s LP3 Environmental Infrastructure Fund which was launched to invest in sustainable bio-energy projects across the UK. Iona Capital’s main investment focus is within the Anaerobic Digestion, Energy-from-Waste and CHP sectors, and its investors in its LP3 Fund include a number of local authority pension funds.
“Creating a sustainable energy sector is a top priority for the UK and Iona’s bioenergy projects provide both attractive commercial returns to investors as well as long term social and economic benefits to local communities and future generations” said Nick Ross, Director of Iona Capital.