RBS loans Tamar £32 million for future projects

The seven-year non-recourse finance facility, described as the first of its kind for the AD industry, will also be used to help expand the firm’s portfolio of plants currently operating.

Non-recourse financing is when the lender looks to the profits from the project for the repayment of its loan, rather than the assets of the borrower.

Tamar currently has five operational AD plants at Basingstoke, Hampshire; Holbeach, Lincolnshire; Retford, Nottinghamshire; Halstead, Essex and Hoddesdon, Hertfordshire. It has also secured permission for a sixth plant at Bromley in Greater London in October 2014.

The majority of the feedstock for Tamar’s network of plants comes from waste from the food processing industry, agricultural sources, household waste and material from retailers and other commercial premises.

Development

Dean Hislop, finance director, Tamar Energy, said: ”The RBS facility is a significant achievement for us, not only for being the first of its kind in the AD sector but also for its scale. It’s a sign of confidence in Tamar Energy’s business model from a leading UK bank and enables us to drive our business forward at pace”.

Sue Milton, director, RBS, added: “This is a landmark transaction and RBS is delighted to have worked with Tamar Energy’s management team to provide the initial funding to support the company’s growth ambitions.”

The company was established in February 2012 with around £97 million in financial backing from investors including The Duchy of Cornwall, The Rothschild family and Rothschild Investment Trust, Dubai-based investment company Fajr Capital and supermarket chain Sainsbury’s.

In November 2012 Tamar completed a deal to acquire the organics arm of Countrystyle Group Limited, which including the development rights for three proposed AD facilities, all with full planning permission (see letsrecycle.com story).

Commenting on the financing deal, Energy and Climate Change minister Amber Rudd said: “With AD developers now being recognised as worthwhile investments in their own right without the need for additional assets to raise financing, this is an exciting moment for the industry. Already AD deployment has soared by over 200% since 2010 and I look forward to the continued growth of the AD sector as a source of clean energy as well as investment and jobs.”