Bristol Recycling & Energy Facility Secures £20 Million

06 October 2011

UK based specialist waste treatment company, New Earth Solutions, Group Limited has completed a refinancing of its 200,000 tonnes per annum Avonmouth waste treatment facility on the outskirts of Bristol. 

According to the company, the refinancing of the £28.5 million Avonmouth facility sees £20 million of senior debt introduced into the project at a gearing level of 70%. 

The company says that the incoming senior debt was provided on a 50:50 basis by Norddeutsche Landesbank Girozentrale ("NORD/LB") in partnership with The Co-operative Bank plc ("The Co-operative Bank").

The Avonmouth facility was opened earlier this year and employs mechanical and biological processes to treat household and commercial residual waste. 

The company says that the facility was developed to service its residual waste management contract with the West of England Partnership. Under the terms of the nine year contract the facility will treat over 120,000 tonnes per annum of residual household waste from the region.
 
The facility is also expected to become a strategic regional site for energy recovery, according New Earth, which recently commenced construction of a renewable energy facility at the site.

When complete, the company says that the facility will generate up to 7.5 MW of electricity using advanced thermal conversion technologies to recover low-carbon renewable energy from refuse-derived fuel produced at the adjacent waste treatment facility.

The Avonmouth site was originally funded through equity and junior debt provided by infrastructure investment funding sourced from New Earth Recycling & Renewables plc (NERR) together with New Earth's own equity investment. 

With its partners, Premier Group (Isle of Man) Limited, New Earth has established two open-ended investment funds targeted at experienced investors and institutional funds that invest exclusively into New Earth and its projects through NERR. 

To-date the company claims that these funds have raised in excess of £80 million of cumulative subscriptions since summer 2008.

Chris Cox, managing director of New Earth explains, "Our innovative funding strategy with The Premier Group and the availability of cash from the New Earth investment funds has been critical to New Earth's growth from one facility in 2008 to five today."


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