Government agrees £10M loan fund to stimulate investment in AD

Funding to the tune of £10M to boost investor confidence in new anaerobic digestion (AD) facilities across England will be made available in a special loan fund, Defra has announced.

The funding pot will be established by the Waste Resources & Action Programme (WRAP) and is set to run over a four-year period to provide debt finance for additional AD capacity.

The focus and criteria of the fund is yet to be agreed on, but it’s part of the Government’s drive to increase the uptake of energy-from-waste from AD. It was announced under Defra’s Anaerobic Digestion Strategy and Action Plan, released earlier this week (14 June).

While the strategy does not set specific targets or regional strategies for the adoption of AD, Defra intends the document to be the “first step” in helping to overcome some of the barriers in adopting the technology.

A significant number of actions in the plan are aimed at improving dissemination of information, developing best practice, providing an agreed framework for skills and training, and further work to deal with specific barriers such as connection to the gas grid.

Alongside the strategy, the Government says it is working to ensure that the financial incentives available for AD under the Renewables Obligation, the feed-in tariffs scheme, the Renewable Heat Incentive and the Renewable Transport Fuel Obligation provide the revenue support that investors need.

Maxine Perella

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