Land Energy, a UK-based company which recycles wood into pellets that can be used as a biofuel in power stations and industrial sectors for heating, has received a £350,000 debt financing from Finance Wales.
The capital will be used to finance part of a £2m investment. The company acquired a former wood pellet facility in Bridgend, South Wales, and has invested in a new 12,000sq ft process, storage and feedstock building, new wood fibre refining machinery and upgraded fibre grinding and wood pellet capacity.
Land Energy is forming a network of localised wood pellet manufacturing plants throughout the UK to tackle the growing need for renewable energy sources.
Rhian Pugh Investment Executives at Finance Wales, who worked on the deal alongside with Karen Davies, was quoted to say: “Biomass is becoming more important by the day as companies seek alternatives to conventional fuels and pressure mounts to reduce CO2 emissions.
“Land Energy has set out a biomass strategy that it sees as a key to delivering fuel diversification and carbon abatement”.
Advisors on the deal were Black and Veatch Ltd who provided technical advice to Finance Wales.