UK investment firm adds biomass to portfolio

By Luke Geiver | May 02, 2012

Ludgate Environmental Fund Ltd. has invested  more than $5 million in U.K. biomass firm Ignis Biomass Ltd., helping to fund the construction of a biomass plant in Wick, Scotland.

The investment makes up roughly 6 percent of Ludgate’s $80 million portfolio, formed in 2007 to invest in waste management and recycling, renewable energy, energy efficiency and water. The combined-heat-and-power biomass system will use locally sources biomass fuel and replace the oil-fired district heating network that serves the Highland Council region.

Along with the $5 million investment in Ignis, Ludgate also announced funding for a series of anaerobic digestion systems. With $11.3 million, Tamar Energy Ltd., a biogas developer based in the U.K., will continue pursuing a network of 40 AD facilities that will produce roughly 100 MW over the next five years. In February, Tamar Energy announced that Sainsbury, U.K.’s leading retailer of anaerobic digestion equipment, will partner on the projects. Ludgate was joined by RIT Capital Partners plc, the Duchy of Cornwall, investment firm Fajr Capital and other investors on the anaerobic digestion investment.

And in a third investment, Ludgate has committed $8.5 million to a waste heat recovery company based out of Germany. Micropelt GmbH will use the funding to expand its network of waste heat recovery clients.

“We are pleased to make these three investments in high growth industrial cleantech companies,” according to John Shakeshaft, chairman of Ludgate Environmental Fund. “These deals represent diverse investment in critically important resource efficiency supporting sustainable economic growth.”

In total, Ludgate lists 13 companies in its portfolio.