Multi-million pound investment in UK's leading food waste to electricity business
It was announced to the stock exchange today (2nd August 2012) that market leaders in food waste anaerobic digestion (AD), BiogenGreenfinch, have secured a £24.4m investment from construction and property giants, Kier.
Under the deal, Kier is investing up to £24.4 million pounds in the business which will add to the substantial investment already made by BiogenGreenfinch’s parent company, Bedfordia Group. As a result of the investment, Kier will become a 50/50 joint venture partner in Biogen alongside Bedfordia.
To mark this key milestone in the company’s history, the company has taken the opportunity to strengthen the impact of its brand by shortening its name from BiogenGreenfinch to Biogen.
John Ibbett, Chairman of Bedfordia Group and Biogen says, “This partnership confirms Biogen’s place at the forefront of the green energy industry. Kier recognises the demand for anaerobic digestion to recycle food waste, generate sustainable electricity and cut greenhouse emissions both now and for the foreseeable future. In addition to Biogen’s recognised experience and expertise in the food waste AD industry we are now able to benefit from Kier’s considerable track record and skills in environmental services and construction to help us accelerate the roll out of our AD plant pipeline.”
Biogen will continue to operate as before, but the joint venture now means it will be better placed to pursue its ambitious growth strategy and position it as the UK’s premier renewable energy from food waste company. With two fully operational AD plants already in Bedfordshire and Northamptonshire and a pilot scale demonstration plant in Shropshire, the company has secured a further contract to build a plant in Caernarfon and is preferred bidder for another plant in Denbighshire. The business has an established design and process engineering base and groundbreaking R&D laboratory in Ludlow, Shropshire and is the UK’s only AD business which designs, builds and operates all its own plants.
Paul Sheffield, Chief Executive of Kier, commented, “We are delighted to have made the investment in Biogen, which again demonstrates Kier’s strategy of developing intelligent solutions for our clients and also our commitment to the green agenda. We see significant potential for the development of the business in the coming years.”
“We see this as fantastic news for all our stakeholders”, Richard Barker, Chief Executive of Biogen says. “Our existing customers and local authorities can be confident that Biogen will have an enviable financial base going forward which underpins our acknowledged expertise in the industry. Our employees can feel proud of the part they have played in helping the business reach this point today, and can of course be secure in the knowledge that they are part of an organisation spearheading the growth of renewable energy generated from the food waste this country throws away.”
The new company’s board will comprise three members from Bedfordia, three from Kier and two Biogen executive directors. As part of the business growth strategy the company will be investing in new AD plants nationally with the target of having nine fully operational plants by 2017.