The capital will be used to increase the generating capacity of the facility, which is run under the joint venture title of Rosewood Energy, to 1.5MW.
The plant utilises bio waste provided by local suppliers including major supermarkets, as well as from some London boroughs such as Hounslow and Ealing.
In addition to the finance, Iona Capital partner Mike Dunn will join the Rosewood board, adding 15 years of waste management experience to the company.
Dunn said, ‘This deal is further evidence of the key role Iona is playing in helping the UK to meet its landfill diversion and recycling targets. Rosewood is typical of many other environmentally sustainable deals we’re working on with Biogen. Escalating landfill tax and the government’s targets for renewable energy are the two key drivers promoting investment in recycling and energy from waste.
‘Obtaining double [Renewable Obligation Certificates] represents recognition by regulators of the sustainability and advanced nature of the technology. With a number of further [anaerobic digestion] facilities in our pipeline we look forward to the continued development of our investment strategy.’
Richard Barker, CEO of BiogenGreenfinch, added, ‘Iona Capital brings a strong understanding of the [anaerobic digestion] model, the UK waste sector and local authority procurement processes. This, together with their collaborative and practical approach to delivering a robust funding solution, have made them a good partner to deal with.’
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