Bridges Ventures leads investment in waste energy company AeroThermal Group

9 March 2010

UK investment group Bridges Ventures has led an investment with green venture capital investor Carbon Trust Investments in AeroThermal Group, a Dorset, UK-based developer of an autoclave-based steam treatment technology for waste.

The company said that the investment from Bridges Ventures and Carbon Trust Investments will be used to build a full-scale AeroThermal advanced anaerobic digestion (AAD) system which provides biogas from waste, including municipal solid waste otherwise destined for landfills. Mixed raw waste is processed in a steam filled autoclave at high pressure, breaking down the cell structure of the organics by hydrolysis which increases the proportion of waste available for anaerobic digestion, from which a methane-rich biogas is produced which is then harnessed to generate green electricity. Waste heat is utilised within the system and the remaining recyclable material is sterilised and cleaned, enhancing its appeal to the recycling market.

The UK’s anaerobic digestion market is growing, with the Department for Environment, Food and Rural Affairs (Defra) suggesting that more than 100 million tonnes of waste feedstock is available each year for biogas production which could provide between 10 and 20 TWh of heat and power.

AeroThermal said that it is well-placed to deploy its AAD system either on a turnkey basis or through the development of merchant site joint ventures, where venture partners provide a waste stream and operating expertise and AeroThermal and its backers provide the processing equipment and funding.
Ian Toll, chief executive, AeroThermal Group, ‘This funding round is a major milestone enabling AeroThermal to prove its innovative technology at full commercial scale. I am especially pleased to welcome support from such prestigious investors as Bridges Ventures and Carbon Trust Investments as well as to receive support from our existing shareholders, particularly in such a challenging funding environment.’

Philip Newborough, chief executive, Bridges Ventures, added, ‘Bridges Ventures is excited to back a capable management team to take advantage of the opportunities in the emerging waste-to-energy sector with attractive potential financial and environmental gains. AeroThermal is now well-poised to build upon its technical pedigree to commercialise its autoclave know-how in the waste sector. We are committed to invest further to support the deployment of AeroThermal’s technology, and we look forward to working with the AeroThermal management team to fully realise its potential.’

Bridges Ventures is an investment company established in 2002 as a fund manager with a social mission whose commercial expertise is used to achieve social or environmental aims as well as attractive returns for investors. Four funds have been raised to date: Venture Funds I & II, the Bridges Social Entrepreneurs Fund and the Bridges Sustainable Property Fund.

Venture Fund I totaled £40m while Venture Fund II totaled £75m. Investors in the second fund include HSBC, Co-operative Financial Services, Barclays Business Banking, Lloyds TSB, and Citigroup, individuals including Tom Singh of 3i, Dr Mike Lynch of Autonomy Corporation, Harvey McGrath of Man Group and Lloyd Dorfman of Travelex, as well as pension funds and endowments including the Universities Superannuation Scheme, the West Midlands Pension Fund and All Souls College.

The Carbon Trust is an independent company set up in 2001 by the UK government. Carbon Trust Investments Limited is the venture capital investment subsidiary of the Carbon Trust and has invested in 18 businesses over the last seven years.

Copyright © 2010 NewNet

Tags: biomass, venture capital, waste

This story was published on Tuesday, March 9th, 2010 at 11:24 am and is filed under Europe, biomass/biofuel, deals. You can follow any responses to article entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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