Financial Schemes Available to AD Projects

October 2011
This note summarises the financial schemes which are currently available for AD projects. The information contained is correct to the best of
ADBAs knowledge at the time of publication, but please check with administrators of individual schemes for up to date information.
Enterprise Finance Guarantee (EFG)
The Enterprise Finance Guarantee (EFG) is a targeted measure intended to facilitate additional commercial lending to viable SMEs unable to obtain
a normal commercial loan due to having no or insufficient security. Only available through accredited EFG lenders, detailed on the Department for
Business Innovation & Skills (BIS) website, see below.
EFG will continue until 31 March 2015, enabling up to 600 million of additional lending in 2011-12, and over 2 billion in total between 1 April and
31 March 2015, subject to demand.
Contact
Website:
List of Funders:

www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/enterprise-finance-guarantee

Address:

Department for Business, Innovation and Skills

1 Victoria Street
London
England
SW1H 0ET

Tel:

020 7215 5000

www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/enterprise-finance-guarantee/efg-list-of-lenders

Anaerobic Digestion Loan Fund (ADLF)

The Anaerobic Digestion Loan Fund (ADLF) is a 10m fund designed to support the development of new AD capacity in England. The fund aims to
support 300,000 tonnes of annual capacity to divert food waste from landfill by 2015. The ADLF has a loan minimum of 50,000 and a maximum of
1,000,000, with a maximum term of five years.
The ADLF will offer direct financial support to organisations that are interested in building AD capacity in England in order to provide digestate of
sufficient quality for a variety of UK markets and to generate renewable energy in the form of biogas through the diversion of food and other organic
resources.
The ADLF also aims to ensure that the material is diverted from landfill or from other, less environmentally sustainable operations up the waste
hierarchy.
Contact
Website:

www.wrap.org.uk/farming_growing_and_landscaping/ad_loan_fund.html

Then click on ADLF Product Information Form

Email:
Tel:

Pam Golding at WRAP

01295 819919

pam.golding2@wrap.org.uk

eQuip
If you are a recycling business, you will already know how hard it can be to lease vital machinery and equipment. Understandably, banks and other
lenders are often reluctant to look at technologies they are not familiar with, especially in a sector as new and unproven as recycling. Often, this

reluctance can be traced back to the simple fact that the residual value of such equipment (what it will be worth at the end of a lease) is very hard to
calculate.
eQuip, set up by WRAP, may be able to help by offering a Residual Value Guarantee (RVG) giving recycling companies help to lease machinery
they need by guaranteeing the future residual value.
Due to European state aid rules, this facility would not be available to developers/projects looking to claim FITs. However, it would work if ROCs
were your preferred incentive.

Contact
Website:

http://www.wrap.org.uk/recycling_industry/support_funding_guidance/help_for_recycling_businesses/money_matters/equip.html

Email:

Pam Golding at WRAP

Tel:

01295 819919

pam.golding2@wrap.org.uk

Accelerating Growth Fund (AGF)

The Accelerating Growth Fund is a limited fund that has been established by WRAP to provide for and to structure investments directly into
companies (typically SMEs) operating in the recycling sector on a commercial basis in accordance with defined eligibility criteria.
Contact
Email:

Pam Golding at WRAP

Tel:

01295 819919

pam.golding2@wrap.org.uk

The Carbon Trust/Siemens Financial Services

Carbon Trust Implementation and Siemens Financial Services provide businesses with a range flexible energy efficiency financing options. They
offer leases, loans and other financing options from 1,000 upwards with no maximum, to all types of organisations. Payments can be calculated so
that they are offset by the anticipated energy savings.
Contact
Tel:

0800 988 3718

Website:

http://www.carbontrust.com/client-services/technology/implementation

Enterprise Investment Scheme

The Enterprise Investment Scheme (EIS) is designed to help smaller higher-risk trading companies to raise finance by offering a range of tax reliefs
to investors who purchase new shares in those companies.
It is important that investors are aware of the rules the company has to observe, not just at the time of the investment but for at least three years
afterwards. If it fails to meet those rules tax relief will not be given, or, if it has already been given, will be withdrawn.
There are a number of EIS funds in the market; however, its worth initially following the guidance given on the HMRC website, details below.
Contact
Website:

www.hmrc.gov.uk/eis/

The above schemes can be used in conjunction with debt and equity funding
Banks
Many of the major UK banks have developed a greater understanding of the AD sector over the last few years. Some have clearly made more
progress than others, with some establishing dedicated funds just for the renewable sector. They may offer secured debt facilities for AD, with
project finance options in some circumstances.
Contact:

In the first instance you may wish to approach your relationship manager within your own bank. You can also contact ADBA for
direction to receptive banks.

Tel:

ADBA: 0203 1760 503

Asset Finance/Leasing/Operating Lease

This can be available on parts of a plant, for instance, the CHP unit, depackaging equipment, or materials handling machinery etc. This facility can
be for terms up to 7 years and can also be used in conjunction the eQuip scheme mentioned above.
Contact:

Your bank is likely to have an asset finance/lease subsidiary, so again initial contact with your bank is a good start. A search of
the internet should give you further options, or contact ADBA.

Tel:

ADBA: 0203 1760 503

Equity Investors
The equity investors can offer investment for larger individual projects, or where the project involves multiple sites. Equity can be a valuable
alternative a route to funding, albeit of a more specialised nature. It wont suit all developers and many projects wont be suitable. Equity investors
working in the AD sector tend to have a good comprehension of this technology.
Contact:

There is a number of specialists within this sector managing funds for investment. They are best identified through searching the
internet, or by contacting ADBA.

Tel:

ADBA: 0203 1760 503