Farm waste to Green Power

There’s an old saying “where there’s muck there’s brass” and this is doubly true when it comes to homegrown renewable energy. Whether it’s from wind, solar, hydro or anaerobic digestion; the business case for investment in sustainable technologies is compelling – if you’ve wondered how you can play your part, read on.

I believe that we have a duty to invest our money ethnically in the same way that we have a duty to earn our money ethically. I’m not the only one either and Green capitalism for me is a way to put your money to good use. I’ve written previously about it here and here and here and overall my experience has been positive in terms of the financial returns.

We all now of wind farms, solar panels and hydroelectric as renewable energy sources and that oil, coal and gas are harmful. But did you know that farming is responsible for a large part of our Greenhouse Gas emissions and it’s not just methane from beef farming or deforestation that add to the numbers. The impact of just manure adds up to 3% of UK GHG emissions and 16% of methane emissions. Methane as a gas is 28 times more potent than carbon dioxide as a greenhouse gas – so anything which can reduce our methane and CO2 emissions is a step on the right direction towards net zero.

Anaerobic Digestion

If you are wondering “What is anaerobic digestion” (AD) then it is simply where you use bugs to breakdown organic matter like food or animal waste without oxygen into methane and biofertilizer. The methane can be burnt to produce heat and power or fed into the grid and the smelly stuff can be spread on the fields to improve crop yields. With over 30 years of track record and hundreds of facilities all over the UK and thousands more around the world it’s a simple and well tested technology.

Green Capitalism

Abundance Investment currently have an investment offer from Agrogen to raise £2.65m for investment in an AD plant in Staffordshire to use local farming residues and stubble to feed the AD plant. The plant can produce up to 250kW of electricity and 549 kW of heat and the funding will allow it to become more sustainable, by allowing it to process a larger variety of farm waste and remove any need for maize of energy crops which is common in other AD plants. It’s already raised £1.5m as of the 7th of July form over 1,200 investors. You can invest from £5 and the project returns 7.1% (IRR) over the 16 year term. For me it ticks the box of having a decent return, long time horizon and green credentials.

AD sites in the UK

There are already hundreds of AD sites in the UK but the truth is that we need more and that means money is needed to fund the investment. AD can help green our gas network but displacing natural gas from oil and gas production. I’ve invested in AD projects before and in other Abundance Investment projects. I’ll be putting some money in myself (hopefully before it fills up).

Thanks, GFF

Please note that this is not financial advice, please do your own research and take responsibility for your own decisions. I am neither a shareholder in either Agrogen or Abundance Investment.

2 Comments

  1. Hah- wondered if anybody I follow would post about this. Just reinvested my returns from Abundance into this project. Even better that you can do so in an IFISA as well.

    Like

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