New Earth gains £4m for national roll-out

15/02/08 12:25

New Earth Solutions has gained £4m of investment so that it can roll-out its innovative waste management facilities across the UK.

The company, which was founded to help local authorities meet EU directives that restrict the use of landfill, has been backed by Impax Asset Management.

New Earth currently has a 50,000 tonne per annum waste facility in Dorset, which converts waste into compost and separates recyclable materials.

This facility, which is supported by contracts from local councils in Bournemouth and Bristol, takes advantage of the fact that local authorities receive penalty fines for every tonne of waste they send to landfill that exceeds their legally imposed limits.

A second facility, backed by Kent and Essex County Councils, is also under construction with contracts to receive organic waste.

New Earth will now use this latest funding to build more of these facilities – six in total by 2009 – in other locations across the UK.

Peter Gillatt, managing director of New Earth, is delighted by the investment and says that the money will pave the way for an AIM float next year.

“We welcome this investment from Impax. This capital will help us to meet our core objective to develop six further operational facilities for local authority clients in the run up to 2009,” he said.

“The pre-IPO equity injection also helps to lay the foundation for a flotation on AIM before the end of 2009.”