New Earth Solutions has received £4m from the Carbon Trust to create a business that turns household waste into energy.
Founded by entrepreneur Bill Riddle in 2006, New Earth Solutions was launched with the aim of finding more sustainable alternatives for waste disposal and has already developed waste treatment centres capable of diverting 80% of household waste from landfill.
The fully enclosed and environmentally friendly plants biologically treat waste to produce sellable compost, soil conditioners and recyclables. In doing so, the business helps local authorities meet their obligations to divert waste under the EU Landfill Directive.
The £4m investment is part of a £15m equity fundraising launched in August, adding to £5m already secured from AIM-listed cleantech investment company, Ludgate Environmental Fund in September.
Investment will support the creation of a new renewable energy company, New Earth Energy, which will develop advanced thermal technologies to convert waste-derived fuel into electricity. The first energy recovery power plant is expected to begin trading in 2010.
Jonathan Bryers, partner at CT Investment Partners, which advises the Carbon Trust on its investments, commented:
“We are delighted to be backing New Earth and its blue-chip management team as they build their waste to energy business over the next few years. The waste industry in the UK is currently evolving from a logistics and landfill industry to one based on efficient resource management and energy generation – we believe New Earth is well positioned to capitalise on this exciting opportunity.”
New Earth Solutions now has three waste treatment centres in operation, in Poole, Kent and Gloucestershire, and has secured planning permission for three more sites. It has contracts to receive waste from the local authorities of Bournemouth, Dorset, Bristol, Kent, West of England Partnership, Gloucestershire and Leicestershire.
Chris Cox, managing director of New Earth, added: “The Carbon Trust is a highly respected and high profile investor and will add significant value as we continue the expansion of our waste treatment and energy recovery facilities throughout the UK.”
The £4m committed by Carbon Trust Investments Ltd is part of the £18m fund created by the Department of Energy and Climate Change. The fund was launched last month to invest in clean-tech companies and help the UK move towards a low carbon economy.
© Crimson Business Ltd. 2009