The funding is the first such financing facility in the AD industry. It is a seven-year financing facility that will enable Tamar Energy to refinance its five existing AD plants and build the next wave of plants scheduled in the company’s development pipeline.
Tamar’s existing plants, located in Hampshire, Lincolnshire, Nottinghamshire, Essex and Hertfordshire, have a combined capacity of 11 MW and generate baseload green energy from the processing of food, vegetable and agricultural organic waste. In October 2014 the company also secured permission for a sixth plant in Greater London.
“The RBS facility is a significant achievement for us, not only for being the first of its kind in the AD sector but also for its scale” said Dean Hislop, Tamar Energy’s Finance Director. “It’s a sign of confidence in Tamar Energy’s business model from a leading UK bank and enables us to drive our business forward at pace.”
Willie Heller, Chief Executive of Tamar Energy, added that the funding is a springboard to the company’s next phase of growth, demonstrating the increasing maturity of the commercial-scale AD sector. The funding provides the company with the resources and flexibility to consider all opportunities for growth as it continues to build out its project pipeline.
AD developers now being recognised as worthwhile investments in their own right without the need for additional assets to raise financing, according to UK Energy and Climate Change Minister Amber Rudd. It is an exciting moment for the industry, given that AD deployment has soared by over 200 percent since 2010. Continued growth of the AD sector is an important source of clean energy in the UK, as well as investment and jobs.
Tamar Energy also recently signed a power purchase agreement (PPA) with EDF Energy for its first five AD plants. The first of these, at Basingstoke in Hampshire and Holbeach in Lincolnshire, started on the PPA terms in December 2014 and the other plants will follow in 2015.
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