East London Biogas

East London Biogas Ltd. is successfully operating a £21 million organic waste facility at the London Sustainable Industries Park (LSIP) in the London Borough of Barking and Dagenham. The plant, which is the first of its kind in London, has the capability to process 49,000 tonnes per annum (tpa) of food and green waste via a 30,000 tpa Anaerobic Digestion (AD) plant and a 19,000 tpa In-vessel composting (IVC) plant.

LWARB Support

The project reached financial close in August 2012. LWARB invested £4.4 million of senior debt into the facility on pari passu terms with Investec Bank plc (providing £3.5 million). The remaining £13 million has been provided by equity investors:

  • the Foresight Environmental Fund (FEF), FEF is part of the London Green Fund (LGF);
  • BIS’s UK Green Investments (UKGI) which is a precursor to the Green Investment Bank (this is the first investment made by Foresight Group on UKGI’s behalf); and
  • Quercus Assets Selection SCA SICAV-SIF.

Much of the feedstock for the facility is provided under short term waste supply contracts. The investment by LWARB, combined with FEF (in which LWARB invested £18million), attests the investment structure LWARB has established and pays testament to LWARB’s ability to fund projects that are not “run of the mill” project finance transactions.

LWARB’s Objectives

  • Landfill Diversion
  • CO2 Displacement
  • Electricity Generation
  • Job Creation

Outcomes

The Plant was officially opened by the Rt Hon Vince Cable MP on 23rd April 2014 and is now fully operational. It produces over 36,000 tpa of AD digestate and 14,000 tpa of compost for agricultural use. The facility also generates approximately 1.4MW of electricity, sufficient to power around 2,000 homes.

Related Documents

Press release 31/08/12 TEG secures funding for £21m organic waste facility in Dagenham (TEG Release)

News 19/03/14 Foresight Group announces the handover of TEG Biogas’ plant in Dagenham