Waste treatment firm New Earth Solutions is considering selling its shares on the London Stock Exchange in order to raise capital for its UK and overseas expansion plans.
The company said it requires 200-300 million of capital investment for a number of long-term projects and is exploring additional financing options, including launching an initial public offering (IPO), which would see shares in the company sold on the stock market.
Through the IPO process, New Earth Solutions would transform from a private company into a public company.
Another option being considered by the company, which has its head office in Dorset, is a further collaboration with the infrastructure funding market.
The New Earth Group said there had been strong demand for the investment fund it established in 2008, New Earth Recycling & Renewables (Infrastructure) Plc, to support the Groups growth.
It said the fund had built up net assets of circa 200 million and will continue to play an active role in supporting the Groups finances.
Contracts
Since the fund was established in 2008, New Earth said it had secured a portfolio of local authority waste contracts around the UK as well as constructing five waste management facilities and its first energy-from-waste facility at its Avonmouth site in Bristol.
The 120,000 tonnes-per-year capacity Avonmouth facility uses New Earths patented NEAT advanced conversion thermal (ACT) technology which began processing refuse derived fuel (RDF) in June 2013 (see letsrecycle.com story).
According to New Earth, the successful completion of the facility has resulted in a step change in the level of investment it [the company] requires to facilitate the next stage of growth.
It was also announced last month that the company has been granted planning permission for a facility in Canford, Dorset, to treat 80,000 tonnes of RDF per year via the NEAT technology. Construction is set to begin next year (see letsrecycle.com story).
And, the company is set to build a 60,000 tonnes-per-year capacity energy-from-waste plant to treat household waste and produce RDF in Galashiels as part of a 24-year contract with the Scottish Borders council.
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Commenting on the future of New Earth, company chairman Bill Riddle said: New Earth started life as a composting business but is now firmly focused on residual waste treatment, thermal technology development and renewable energy generation.
The relationship with the fund has served the Group extremely well and we are building on this to identify and execute the most effective financing strategy for New Earths next series of infrastructure investments. The NEAT technology offers scope for us to become not just a national company, but an international one.
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