Cindrigo Holdings has secured more than £11m in new funding and guarantees from a strategic investor group to support balance sheet strengthening and biomass expansion.
The package comprises approximately £6.7m in equity at 12 pence per share and up to £4m in additional potential share subscriptions. The company will also co-fund a new joint venture, Fuelwood Finland, with €3m from the investor group and a €1m development loan from Cindrigo itself.
Fuelwood Finland is designed as an integrated wood pellet operation, targeting annual capacity of 80,000 tonnes by the end of 2026. The venture is intended to align closely with Cindrigo's existing Finnish energy plant, with Fuelwood acting as the primary customer for the plant's heat and power output — creating a vertically integrated biomass model.
The longer-term ambition is to scale pellet capacity to around 400,000 tonnes per year, with potential annual revenues of approximately €100m at current prices. Management said the funding would also support acceleration of development activity in Germany, with the group positioning itself as a scaled participant in Europe's energy transition.
Alongside pellet production revenues, the structure is expected to generate management service income and reduce the company's dependence on a single off-taker.
Cindrigo raises £11m to launch Finnish biomass joint venture
