Why lending to anaerobic digestion plants makes sense for the climate

Anaerobic digestion (AD) has the potential to reduce the UK’s emissions by 5%, create 30,000 jobs and generate green energy from approximately 90 million tonnes of slurry and manure that currently contributes to rising greenhouse gas emissions.

In fact, according to the AD & Biogas Association (ADBA), anaerobic digestion represents a GBP 1 trillion global market opportunity.

But, when there are such clear economic benefits for the UK in anaerobic digestion, some may question why growth has slowed over the past 18 months.

Prestige Funds has delivered GBP 500 million worth of investment into the UK biogas industry, financing plants that, over the last 12 months, have started delivering clean energy to 120,000 British households. More still needs to be done if the UK is going to achieve its clean energy objectives, however.

Why lend to UK biogas plants

The UK wants to become a global leader in bio-based solutions, and this will come from a combination of both public and private finance. Anaerobic digestion has been one of the fastest growing renewable industries for investors worried about climate change, and there are exciting developments in the pipeline.

New technologies that operate as additions to existing biogas plants are being brought to the fore, with the aim of making existing plants more efficient, and profitable. In addition, there is also a major rural economic opportunity for a deregulated gas network, which could provide a much-needed boost to community energy.

Why food waste matters

On a more industrial scale, the National Infrastructure Commission has reported that 75% of the British public who don’t have them already would support mandatory food waste collections, which could generate a need for more food waste anaerobic digestion capacity, either through existing units or new projects.

Anaerobic digestion also brings much more than just renewable energy, such as environmental credentials through the reduction of greenhouse gases and enhanced waste management. Not forgetting the opportunity that lies within making more from all the bi-products, including the nutrient-rich digestate fertiliser and CO² produced from biogas upgrading.

All these points indicate a bright and positive future for the sector.

Why invest with Prestige Funds

Private lending funds play an important role in delivering much-needed private finance for new and existing anaerobic digestion plants. This includes lending for modernisation and expansion of existing biogas plants.

At Prestige Funds, we have built up the in-house expertise that makes us one of the largest lenders to the biogas sector in the UK. Our expertise has allowed us to play an active, hands-on role in making sure that plants will be efficient, well-managed, money making enterprises that can continue to deliver clean energy to rural communities for years to come.