Iona Capital, a specialist investor in low carbon infrastructure, has financed the construction and operations of a new 8.8MW anaerobic digestion plant located in Dumfries and Galloway.
Courtesy of Iona Capital
The plant has pre-qualified under the Non-Domestic Renewable Heat Incentive (RHI) which was introduced in 2011 to incentivize the uptake of renewable heat in industry and businesses.
The principal feedstock will be waste slurries generated from local dairy and beef farming operations, underpinning the plant’s compliance with OFGEM’s revised targets on sustainability.
The plant will have the capacity to generate 8.8MW of base load renewable energy which is sufficient to heat approximately 7,000 households annualy. The plant is being built by BioConstruct GmbH, one of the leading European AD equipment suppliers. The biomethane will be upgraded into the local gas distribution network, controlled by Scotia Gas Networks.
The UK has set ambitious targets for renewable energy – 20 percent of the country’s energy generation by 2020 should be “green” power. Since its launch in 2011, Iona has financed 21 renewable energy projects in England, Scotland and Wales, all of which supply energy to the local grid networks. This latest project follows on from two earlier successful Biomethane-to-Grid projects completed in Scotland at Keithick and St. Boswells. The three plants will have a combined capacity in excess of 20 MW and provide significant operational synergies.
Nick Ross, Director of Iona Capital said, “Creating a sustainable energy sector is a 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.”