Iona Capital finances new AD plant
Specialist investor in low carbon infrastructure, Iona Capital (“Iona”) has announced it is funding the construction and operation of a new 8.8MWth anaerobic digestion plant. The plant will be located in Dumfries and Galloway, Scotland.
The plant’s principle feedstock will be waste slurries that have been generated from local beef and dairy farming operations. This will support the plant’s compliance with OFGEM’s revised sustainability targets.
With a capacity to generate 8.8MWth of base load renewable energy, the plant will be able to provide heat for approximately 7,000 households per year. The plant is going to be built by one of the leading European AD equipment suppliers, Bioconstruct GmbH. All biomethane is to be upgraded into the local gas distribution network which is controlled by Scotia Gas Networks.
Under ambitious renewable energy targets, 20% of the UK’s energy generation is set to be “green” power by 2020. Since 2011 from when Iona was first launched, it has financed 21 renewable energy projects around England, Scotland and Wales. All funded projects supply energy to the local grid networks. Iona’s most recent plans will follow on from two already established Biomethane to Grid projects that were completed in Scotland, one at Keithick and the other at St Boswells. With the addition of its new plant, all three will have a combined capacity in excess of 20MW and will provide significant operational synergies.
Director of Iona Capital Nick Ross has said on the new plant, “Creating a sustainable energy sector is top priority for the UK and Iona’s bioenergy projects provide both attractive commercial returns to investors as well as long term social and economic benefits to local communities and future generations.”