JFS & Associates will act as a development partner and construct a new 250kW AD plant at Howla Hay Farm, Guisborough, North Yorkshire with a planned operational date of January 2014. The farm will provide the required feedstock (manure, slurry, energy crops) to the AD plant to enable generation and sale of renewable electricity to the National Grid thus benefiting from Feed in Tariff Scheme. The UK Government places high priority on the development of the bioenergy industry and the UK target of “zero waste” by 2020.  The plant will also take advantage of by-products such as fertilizer and heat. 

Mike Dunn, Director, Iona Capital said: “This investment is the second of a series of similar investments we have planned with JFS associates.  These investments serve to demonstrate our on-going commitment to the AD market which now includes both agricultural and food waste AD facilities"

Matthew Flint, Director JFS & Associates said: “The team at JFS are grateful for the continued support of Iona Capital. JFS have developed the site at Howla Hay from a concept to a fully consented 'shovel ready' site, taking on all of the development risk and costs.  Iona then provides the critical investment to fund the construction of an operational plant."

You can read this article Waste Management World magazine.

The Star (Sheffield) newspaper has reviewed one of the innovative products offered by R3 in their front page article “Kerb your enthusiasm for concrete's future” and also included a story “Plastic can pave the way” detailing R3 Products' development over the last two years.

To read the full article please visit the Star Business weekly website.

JFS & Associates will act as a development partner and construct a new 250kW AD plant at Ponsonby Old Hall Farm in Cumbria. The farm will supply the feedstock from existing farm wastes such as manure and slurry, supplemented with energy crops. Stanley Renewable Energy will generate renewable electricity from the anaerobic digestion process, receiving income under the Feed in Tariff Scheme, with the electricity being used on the farm or sold to the National Grid.  The farm will have the benefit of free heat from the plant and the use of the digestate bi-product on the land as a bio-fertilizer.

This facility will not only provide an elegant solution for processing organic waste and generating renewable energy for distribution into the local network, but it will also reduce greenhouse gas emissions associated with spreading farm waste on land. This will therefore contribute to the Government's commitment to deliver “zero waste” by 2020 and increase renewable energy generation. This is the first of a number of schemes that are to be developed and funded in this manner by Iona and JFS, with two further farm scale projects in North Yorkshire planned for construction in early 2013.

Mike Dunn, Director, Iona Capital said: “We believe that Anaerobic Digestion technology provides an excellent opportunity for farmers to benefit from new streams of income through the clean production of electricity and reduction of costs on farm. Iona Capital is entering a new small scale AD market and is providing financial stimulation for growth and development of Anaerobic Digestion in the UK.”

Matthew Flint, Director, JFS & Associates Ltd. said “We see this scheme as a fantastic way for farmers to benefit from the drive towards more renewable energy sources. It's also a real partnership where both sides benefit from the others' resources and expertise.  Our strategy is to dovetail into the farms existing business, with JFS taking care of the project delivery, allowing the farmer to continue to do what he does best.”

Consequently the Annual Report & Accounts containing audited financial statements that would have been made up for the year to 30 September 2012 will now be for the eighteen months to 31 March 2013.

Under the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority, substitute unaudited Report & Accounts for the twelve months to 30 September 2012 have been prepared and available for download at National Storage Mechanism and in the Downloads section on Iona Capital's website.

Iona Capital, the environmentally focussed investor, announces the successful completion of an investment in Gradena Limited, a Joint Venture company between Gradsol Ltd and Dena Technology Ltd, an outstanding provider of nanotechnology solutions. Dena Technology has an impressive track record of involvement in 15 separate areas of business development: pharmaceuticals, application & manufacturing of semiconductors, rubber recycling etc. Gradena Ltd will manufacture highly homogeneous wood replacement goods from waste tyres and recycled UPVC using a patented process – nano surface intensification.  Gradsol is a management consultancy company that specialises in sustainability and operational consultancy, particularly in the waste sector. 

The EU Landfill Directive prohibited the whole tyres to landfill from July 2003 and was extended to cover shredded tyres in July 2006. With this ban in place, Iona Capital is helping to develop new facilities for the re-use and recycling of waste tyres.  Iona's investment is an important step in supporting tyre recycling technology that creates no harmful emissions and recycles all by-products.

Gradena is planning to process around 1200 tonnes of waste tyres in year 1 and increase this number by installing more production lines. The end product can be moulded and cut into a wide range of shapes to meet customer needs and will have specific physical and chemical properties that make it more desirable than natural alternatives.  The wood replacement product will be far less susceptible to degradation from adverse conditions such as heat, cold, dampness, wind, insects and UV.  At the end of their life cycle Gradena products can be recycled.   

Nick Ross, Director of Iona Capital, said: “Iona is fully committed to providing funding for the development of environmental projects which help to achieve the zero waste to landfill target. This project is an excellent example of supporting leading edge technology and producing value added products which overcome the growing issue of waste tyres.”

Robert Paley, Finance Director at Gradsol, said: “This project achieves not only strong financial performance but also delivers significant environmental benefits. The main selling point of the end products is that they are much more durable than their traditional counterparts and they provide considerable additional commercial benefits.  The efficient use of recycled tyres and UPVC not only reduces waste volumes; these wastes can be used to produce recyclable, new products.  We even expect to have “off-cuts” and “end-of life” recovery programmes so that nothing is wasted. The products also reduce reliance on wood and other, non-, or less, sustainable construction products.  Gardena's process is eco-friendly and supports our sustainability initiate.”

Dr Brian Sulaiman, the technology's inventor explained that the blending of nanomaterials with waste rubber and UPVC leads to the creation of an exciting new material that has a very wide range of potential properties.

For more information, please refer to WMW magazine

This is Iona's second investment in the development of Welsh AD infrastructure under the Welsh Government's sponsored organic waste program.

Biogen will  construct and operate a new 22,500 tonnes per annum AD plant at  Waen, St Asaph, Denbighshire to process the food waste supplied by the Councils from local households and businesses together with additional third party food waste.

The key elements of the contract are:

• the contract will be between the Councils and Biogen Waen
• the term is 15 years with an option to extend for a further 5 years
• it guarantees a supply of food waste to the facility at a fixed price
• it takes advantage of Government renewable incentive scheme

The AD plant will process food waste to generate 1MWe of renewable energy for the national grid, and produce a biofertiliser for local farmlands.  This plant will provide sufficient power for 1,500 homes continually for a year.

This type of technology is a recognised solution to the UK Government's stated objectives in complying with both EU landfill targets and de-carbonising the UK electricity market and the electricity generated will benefit from premium selling prices through the Feed-in Tariff scheme.  

Nick Ross, Director, Iona Capital said: “This is a second project we have completed in Wales and we are delighted to have worked successfully again in partnership with Biogen and the Welsh Government.  These projects are the first local authority backed schemes focussed on Anaerobic Digestion and we are pleased to have been able to support such an innovative regional infrastructure program.”

You can also read the story on NNFCC website.

R3 Products use three proven moulding techniques to manufacture substitutes for concrete and plywood, using unwanted mixed waste plastic as the raw material. Significant commercial benefits can be offered to customers through demonstrable installation and whole-life cost savings, whilst providing additional environmental benefits such as fewer plastics sent to landfill, lower CO2 emissions and full recyclability at the end of the product's life, thus providing a more sustainable alternative to landfill and incinerated waste.

R3 Products Ltd was launched 12 months ago in Sheffield and was the largest start-up manufacturing company in the UK in 2011. The company commenced operations in March 2012, with the manufacture of two patented products – R-Pave, a SUDS compliant permeable paving system, and Ezikerb®,  a revolutionary two –part kerb, which has received a lot of attention from the building and construction industry. The company has invested in a number of proven polymer processing technologies and demonstrated its key competitive advantage – technical knowledge and experience, to process mixed plastics waste. R3 Products plan to use 5,000 tonnes of mixed waste plastic during the next 12 months and expects to double this volume in the following year.

Mike Dunn, Director of Iona Capital, has said: “We are pleased to be able to support this innovative process and work alongside a highly committed and experienced management team.  This investment is one of a series we are making in the waste renewable sector that is aligned with Government Environmental Policy drivers”.

Reviewing the benefits of their innovative technology, Kevin Parkin, non-executive Chairman of R3, said: “R3 can call upon three moulding processes, unlike other recycled waste manufacturers, which gives us a great flexibility in selecting the best fit technique for the specified product. We ensure that we choose the most cost and technically efficient process for each product, thus developing a solution which matches our customers' requirements perfectly.”

For more information on Gwyriad project, please visit Gwynedd Council website

The facility at St Asaph, Denbighshire will be an AD plant processing food wastes to produce electricity and a digestate product, for use as a fertiliser in agricultural applications. The facility is expected to generate sufficient renewable power to satisfy the needs of over 1,500 homes.

This contract is hot on the heels of the award of Preferred Bidder for the North West Council Hub that was announced in March 2012 for an 11,000 tonne  AD plant in Gwynned, North Wales.

To read the full story, please click here

The facility is due to be operational by the summer of 2013 and once fully operational, it will have the capacity to process up to 11,000 tonnes of food waste every year and will produce enough electricity to power 700 households.

The project will be funded by Iona Capital and is the first in a series of investments across Wales expected by the Iona Capital & BiogenGreenfinch partnership.

Commenting on the company's latest development Richard Barker, chief executive of BiogenGreenfinch, said:

"We are proud and delighted to have been selected to build what will be the first anaerobic digestion facility in Wales specifically designed to take local authority collected food waste.  We, together with our funders Iona, look forward to working with Gwynedd council over the next 15 years to make this project both an environmental and operational success."

To read the full story, please click here. 

The full story can be found on the FT Advisor website in the alternative investments section under the “How waste provides organic growth” heading.

http://www.sustainablebusinessonline.com/news/news.asp?id=352

Iona Capital Ltd ('Iona'), the environmental investment specialist, announced today that it has completed an investment of £750,000 in Rosewood Energy Ltd (“Rosewood”), a Joint venture company established with Biogen UK ltd (“Biogen”), a leading UK owner and operator of Anaerobic Digestion ('AD') facilities.

The investment from the Iona Environmental VCT will finance additional capital equipment to enable the Northamptonshire based plant, owned and operated by Biogen, to increase capacity and produce around 1.5 MW of electricity.  This electricity will be produced from biomass waste provided by local suppliers including major supermarket outlets and also from some London Boroughs including Hounslow and Ealing. This electricity is sold into the grid and also receives a double renewable obligations certificate payment from a regional electricity generator. Double ROCs are the highest OFGEM banding for this type of energy technology, which came into force in April 2009.

The electricity produced by Rosewood will be roughly the equivalent of supplying the total annual electricity needs of around 2,000 domestic users in the Bedford area. 

Mike Dunn, partner at Iona Capital, will join the Rosewood Board bringing a further 15 years of waste management experience to the Company. Mike comments: 

“This deal is further evidence of the key role Iona is playing in helping the UK to meet its landfill diversion and recycling targets. Rosewood is typical of many other environmentally sustainable deals we're working on with Biogen.  Escalating landfill tax and the Government's targets for renewable energy are the two key drivers promoting investment in recycling and energy from waste.  Obtaining double ROCs represents recognition by regulators of the sustainability and advanced nature of the technology.  With a number of further AD facilities in our pipeline we look forward to the continued development of our investment strategy.”

Richard Barker, CEO of BiogenGreenfinch, operator of the Rosewood facility added:

Iona Capital brings a strong understanding of the AD model, the UK waste sector and local authority procurement processes. This, together with their collaborative and practical approach to delivering a robust funding solution have made them a good partner to deal with.”

For further information, please read the article "Biogen secures investment for UK waste-to-energy plant expansion" to see Mike Dunn's and Richard Barker's views on this investment.

One of the main themes for Iona that came out from the announcement is with regards to additional funding ,which is to be provided in civil and environmental infrastructure projects. In particular the Government has established a further £100m of funding specifically targeting environmental infrastructure.

The waste to energy sector has already been well supported by the Government, with Anaerobic Digestion one of only two alternative energy technologies that still qualifies for the double subsidy of VCT tax relief and Feed in Tariffs. 

It is perhaps no surprise that against this backdrop of rising taxes and the need to invest in environmental sectors that the investment case for Iona is stronger than ever.  This is reflected in its growing deal pipeline.

The Chancellor also announced that the £1m annual investment limit that is applied to VCTs will be removed to reduce the administrative burdens on the funds.  This is a big step towards removing the red tape, which is going to make investment more efficient and will benefit both shareholders and portfolio businesses. There is further consolidation of the industry anticipated, which is expected to provide further benefit to the industry also.  Iona will report on this as it happens.

For further information, please do not hesitate to contact Iona Capital on 020 7306 3901.

Iona Capital is an environmental tax efficient fund manager and provides equity and subordinated debt into waste projects which have a renewable element. This includes the production of methane gas for conversion into electricity or heat and the recovery of recyclable materials. Iona develops strategic partnerships and uses sector-specific expertise and financial skills to achieve profitable growth for its investors who range from individuals to large local authority pension funds.

The UK Government has set demanding waste reduction targets for local authorities and the publication of DEFRA's Anaerobic Digestion Strategy report earlier this year identifies Anaerobic Digestion as a proven, lower risk technology to meet these targets.

Anaerobic digestion is a biological process that happens naturally when bacteria breaks down organic matter in environments with little or no oxygen. Benefits include the production of a digestate that can be used as a liquid biofertilizer and a biogas that can be burned to produce electricity. Over 3bn of Government funding has been identified to meet the demand for waste-to-energy facilities in the next ten years.

Iona Capital is currently working with BiogenGreenfinch, the UK award-winning builder and operator of Anaerobic Digestion plants, on a number of contracts targeting local authorities across Wales. Investment is currently being completed into 3 plants, with a further 4 anticipated each year. Each plant takes approximately 9 months to build and commission.

Mike Dunn, Iona Capital's Managing Partner, said:

“Recent government initiatives and enhancements in anaerobic digestion technologies have created significant opportunities for retail investors. The fund has also been structured to maximise the potential to generate strong returns for investors in a tax efficient way. Partnering with BiogenGreenfinch also offers the added confidence of working with a leading organic waste recycling supplier”

Commenting on the partnership Richard Barker, CEO BiogenGreenfinch, said:

“Iona Capital brings a strong understanding of the Anaerobic Digestion model, the UK waste sector and local authority procurement processes. This, together with their collaborative and practical approach to delivering a robust funding solution have made them a good partner to deal with.”

Investment will typically be through a combination of secured debt and equity, targeting a tax-free yield of 10% p.a. and the return of capital in years four to six. Each investment is backed by long term supply contracts with local authorities and larger corporate entities.

Iona Capital has established a pipeline of potential investment opportunities of approximately 10 waste-to-energy plants and is seeking £10million from retail investors. An anaerobic digestion plant derives its revenue from electricity production, the sale of biofertilizer and gate fees. Government incentives such as Feed-in-Tarrifs (FITs) and Renewable Heat Incentives (RHIs) also apply.

Visit the Iona Environmental VCT page to download an Investor Guide and prospectus.

The Offers will open on 5 July 2011 and may close at any time thereafter but in any event not later than 1.00 p.m. on 5 April 2012 in relation to the offer for subscription in respect of the 2011/12 tax year, and at 5.00 p.m. on 1 June 2012 in relation to the offer for subscription in respect of the 2012/2013 tax year.

The Our Funds section of the website gives further information on the Iona Envrionmental VCT share offer. A full prospectus and application form is also available for download.

BiogenGreenfinch picked up the prize for Waste to Energy Provider of the Year at this year's National Recycling Awards, held at the London Hilton, Park Lane on Thursday 14th July. The best recycling and waste management achievements in the UK were recognised at this year's prestigious awards ceremony with over 600 people present to celebrate and reward the impressive work on display in the industry.

Iona Capital is currently working closely with BiogenGreenfinch to bid for a number of waste industry projects. 



BiogenGreenfinch owns and operates three Anaerobic Digestion plants which process a mixture of household and commercial food waste to generate significant quantities of “green” electricity for the national grid – enough to power over 6,000 homes continually for a year.  It is estimated that the UK produces a staggering 22 million tonnes of food waste each year.  The majority of this waste ends up in landfill where it releases methane to the atmosphere – a gas which is twenty two times more harmful than carbon dioxide.  BiogenGreenfinch's method captures the methane to produce renewable energy and also produces a valuable bio-fertiliser for farmers that is itself a substitute for fossil-fuel derived chemical fertilisers.

The company beat off competition from Veolia Environmental Services, Cemex and Living Fuels to win the award which was presented by comedian, actor and satirist, Marcus Brigstocke.

Richard Barker CEO said:

“This award is a great recognition for the whole BiogenGreenfinch team who have worked so hard to get us where we are today. It is also very useful to help promote Anaerobic Digestion more broadly as the best way to convert the UK's enormous amount of food waste into renewable energy”

Andrea Lockerbie, acting editor, MRW commented:

“Winning a National Recycling Award is an amazing achievement. Each year the standard and number of entries and gets higher and higher, making it a tough job for the judges to pick out a winner…… our finalists should feel equally proud of their success too.”

(Secretary of State, Chris Huhne)

10 March 2011
Press Notice: 2011/023

• £860m government scheme expected to increase green capital investment by £4.5 billion up to 2020, stimulating a new market in renewable heat;
• Incentive to increase number of industrial, commercial and public sector installations by seven times to 2020
• A full system of RHI payments will be available to households from October 2012;
• In the interim, more than a quarter of the first year's budget to be guaranteed for up to 25,000 household installations through a “RHI Premium Payment” to encourage take-up;
• 150,000 existing manufacturing, supply chain and installer jobs to be supported
  

The world's first financial incentive of its kind to revolutionise the way heat is generated and used in buildings has been launched by Energy Secretary Chris Huhne.

The Renewable Heat Incentive (RHI) will support emerging technologies and businesses in the UK, strengthening security of supply by reducing dependence on fossil fuel heating and emissions.

• Currently around half of the UK's carbon emissions come from the energy used to produce heat – more than from generating electricity. The RHI will reduce emissions by 44 million tonnes of carbon to 2020, equivalent to the annual carbon emitted by 20 typical new gas power stations .
• Over 95% of heat in the UK is currently produced by burning fossil fuel but with North Sea supplies now in decline leading to an increase in imports, low carbon alternatives are needed.
• The new financial incentive will encourage installation of equipment like renewable heat pumps, biomass boilers and solar thermal panels to reduce emissions and support the existing 150,000 jobs in the heating industry.
  

Chris Huhne said:

“Renewable heat is a largely untapped resource and an important new green industry of the future.

“This incentive is the first of its kind in the world. It'll help the UK shift away from fossil fuel, reducing carbon emissions and encouraging innovation, jobs and growth in new advanced technologies.”

Last week saw the release of the Waste Review and the Anaerobic Digestion Strategy, demonstrating the government's ongoing commitment to sustainable consumption. The Waste Review includes a range of pledges that focus on waste prevention, moving the UK towards a “zero waste economy” through re-use, recycling and recovery. A consultation on banning wood waste from landfill is also planned.

Working alongside the Waste Review, DEFRA's Anaerobic Digestion Strategy outlines the practical application of the coalition's pledges, with a policy drive to achieve a greener economy by increasing energy from waste through Anaerobic Digestion (AD). The report suggests a considerable increase in Anaerobic Digestion facilities over the coming years compared to the current market size. Mike Dunn, Iona Capital Partner, reviewed the strategy saying:

“Iona Capital has a strong record of supporting Anaerobic Digestion technology through funding and management of the Iona Capital Environmental VCT. We are encouraged by the report and specifically the implied commitment to use the Renewables Obligation Certificates and Feed In Tariff schemes to target development of this market.

We look forward to future publications referred to in this report, which will give a clearer insight into the application of these schemes against a backdrop of expanding the market capacity.”

Anaerobic Digestion Strategy findings at a glance

• A number of sources suggest that per annum approximately 7 Mt11 of food waste is sent to landfill.

• That UK agriculture produces roughly 90 Mt12 of slurry and manures per year

• That potentially by 2020 a reasonable expectation for England could be in the range of 5 Mt of food – waste with in the region of 20–60 Mt of animal waste.

• ROC's and FITS reviews are being conducted against a backdrop of developing the market capacity.

• That the Government has agreed that WRAP will set up a new loan fund to help stimulate investment in additional AD infrastructure. A total of £10m over 4 years will be made available to provide debt finance to stimulate investment in additional AD capacity

In-depth reading:

Waste Review in full

Anaerobic Digestion Strategy in full

Iona Capital was originally established in 1981 as part of the Electra Partners Group. The company will specialise in the waste-to-energy market and is led by two established industry experts – Michael Dunn and Nicholas Ross. Relating to the focus of Iona Capital, Managing Partner Nick Ross said:

“Recent government initiatives and enhancements in anaerobic digestion technologies have created significant opportunities for investors. Iona Capital are well positioned to optimise returns in the waste sector over the next few years and we look forward to creating strong partnership with our stakeholders”

The London-based fund has circa £35m of institutional support principally targeting the Welsh Local Authority AD procurement programme. The fund is now seeking further investments within the UK looking at both Merchant and Local Authority supported opportunities.

Iona Capital will release its prospectus in the coming weeks as it is looking to raise additional retail funding lines for its Environmental VCT fund

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