Agrivert joins forces with Grundon to finance new AD plant
Anaerobic digestion (AD) specialist Agrivert has struck a multi-million pound deal with Grundon Waste Management to finance its third AD plant at Trumps Farm near Chertsey in Surrey.
Construction has already begun on the new facility, which is expected to be fully operational by spring 2014.
Once up and running, the Trumps Farm plant will be able to process 50,000 tonnes of municipal and commercial food waste from Surrey and surrounding areas and generate 2.3MW of renewable electricity, enough to supply around 4,000 local homes.
Grundon, which currently collects food waste that is processed at one of Agivert's two existing AD plants in Oxfordshire, will provide £5m as a shareholder loan. SQN Capital Management will cover the remaining £6m through its adviser Summit Asset Management.
"We see a big future in food waste, which is why we have made this investment," said Grundon's deputy chairman Neil Grundon.
"We have a good working relationship with Agrivert and a real respect for its business. At the same time, our customers will benefit because having an AD facility closer to London means we can further extend the services we provide."
Grundon launched a dedicated food waste collection service in late 2012 and has seen volumes increase from 2,000 tonnes per year to over 6,000 tonnes in the past four months.