Iona Capital Finances First Gas to Grid AD plant in Scotland
Iona Capital, in conjunction with Scotia Gas Networks (SGN), has today announced the successful completion of an investment in Keithick Biogas Limited, a joint venture company with Keithick Farms Limited, Coupar Angus, Perthshire.
Iona has been heavily involved in the development of Anaerobic Digestion (AD) infrastructure in the UK having financed nine AD plants in England, Scotland and Wales. This project is expected to commence operations later this year and will be the first Gas to Grid AD project operating in Scotland.
Keithick Biogas will work closely with Scotia Gas Networks who have undertaken to provide the gas upgrading plant and oversee the connection of the plant to the local gas grid. The AD plant is being supplied by MT-Energie, a leading German producer of turnkey biogas plants and will process over 36,000 tonnes per annum of whole crop rye, maize, sugar beet off-cuts, raw silage and chicken litter from local businesses.
The plant will generate over 3 million m3 of biomethane into the local gas grid each year and produce a biofertiliser which will be spread on local farmlands. The plant will be managed by Biogas Power Ltd, one of Scotland’s leading providers of innovative solutions for on-farm and energy from waste AD facilities.
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 gas market. The gas generated will benefit from premium selling prices through the Renewable Heat Incentive scheme.
Nick Ross, Director, Iona Capital said: "This is the first gas to grid project we have completed and we are delighted to have been able to partner with both Scotia Gas Networks and MT-Energie, both of whom we view as future strategic partners on AD projects. We believe the gas-to-grid market has great potential and are pleased to continue our contribution to the regional infrastructure programme."
Robert Wilby, Head of Business Development, SGN said "Greening the gas, by connecting distributed sources of renewable gas to our network as we are in Coupar Angus is at the heart of our long-term vision of an enduring and sustainable gas network. It's a key part of our strategy, and also central to decarbonising the UK's heat supplies.
We have led the way in England with regards to green gas and are therefore delighted to be playing a key role in the delivery of the first Gas to Grid AD project operating in Scotland. We are excited to be working with Iona to further develop our green gas footprint"