Fund News - Ludgate Environmental Fund makes 3 resource efficiency investments

Ludgate Environmental Fund makes 3 resource efficiency investments

2 May 2012

Cleantech investor Ludgate Environmental Fund (LEF) has made three new investments in biomass, anaerobic digestion and waste heat recovery, and said it expects significant growth potential.

Investments include £7m into Tamar Energy as part of what it said is the UK’s largest single commitment to anaerobic digestion to date. The proceeds will be used to fund the development and construction of food and mixed waste anaerobic digestion plants that produce renewable energy.

In addition, it has committed £4.1m in growth capital investment in waste heat recovery Micropelt, based in Freiburg and Halle, Germany.

In this deal, Mitsubishi UJF Capital Co participated alongside LEF and existing shareholders in a total fundraising of £5.3m.

Finally, it has invested £3.1m in a combination of preferred equity and convertible loan notes to take a majority stake in Ignis. These funds will be used for the construction of a biomass energy plant in Wick, Scotland to replace oil-fired heat production for the district heating network bought from the Highland Council.

John Shakeshaft, chairman of LEF, said, ‘We are pleased to make these three investments in high growth industrial cleantech companies. These deals represent diverse investment in critically important resource efficiency supporting sustainable economic growth.’

Meanwhile, LEF has also redeemed more than one million shares in New Earth Recycling & Renewables at 142.1 pence per share, receiving £1.55m in cash.

Tags: Europe, fund, resource recovery