It follows the award of a 10-year contract by Hull and East Riding of Yorkshire councils in July last year to collect and process garden and food waste from 263,000 homes in the region.
Biowise, was awarded the £40 million deal as part of a consortium with J&B Recycling – which will fulfil the dry recycling side of the contract, sorting and processing 25,000 tonnes of glass, plastics, paper and cardboard at its MRF in Hartlepool (see letsrecycle.com story).
Biowise has secured £2.1 million from Yorkshire Bank in order to develop the Willerby facility, which is already nearing completion and is due to begin operations in May this year.
The funding was arranged by Yorkshire Bank relationship manager, Anthony Hutt, and will help the firm meet its growth targets while also providing employment for up to 20 staff in the region.
The facility has also received £1 million funding from the government’s Growing Places Fund via the Humber Local Enterprise Partnership, and another £1.1 million from Close Brothers Assets Finance including a £242,000 grant from the Regional Growth Fund.
Meanwhile Biowise will also provide more than £250,000 of its own funds to finance its new composting facility.
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The new plant will convert the organic waste collected into quality compost for use in the horticulture and agriculture sectors.
Impact
James Landau, managing director at Biowise, said: “The funding from Yorkshire Bank and other lenders will allow us to build and operate the new processing facility, helping to reduce the impact everyday waste has on the environment by providing a sustainable alternative to traditional landfill sites.
“We hope to have the facility up and running by May at which point we’ll be in a strong position to grow the business into new service offerings and geographical markets.”
Brian Lake, head of Yorkshire Bank’s Business and Private Banking Centre in Hull and Humber, said: “Biowise provides an essential service for businesses and councils looking for environmentally friendly and sustainable ways to dispose of household, commercial and industrial waste. The management have demonstrated this is a business which has evolved to continue to meet the changing demands of the marketplace.
“At Yorkshire Bank, we are committed to supporting local businesses in Hull, Humber and East Riding such as Biowise and are pleased we are able to help support the business in its growth plans for the future.”
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