Abundance Investment has launched a new crowd bond to raise up to £2.65m for British waste management firm Agrogen to make its processes more sustainable.
The investment will pay lenders a 7.1 per cent internal rate of return over its 16-year term and is eligible for inclusion in Abundance’s Innovative Finance ISA or SIPP products.
It is part of the green crowd bond platform’s ‘Build Back Better’ investment offer, which enables people to support ethical businesses. It is the first new investment opportunity under the initiative since the Covid-19 lockdown began.
Agrogen uses a green version of anaerobic digestion (AD), a process to break down biodegradable materials, and is looking to make it more sustainable.
The loan will be used to refinance Agrogen’s operational AD plant and fund upgrades to the technology allowing it to process a larger variety of farm waste.
It will be the first in a series of investments in a portfolio of AD plants owned and run by Rob Greenow, director of Agrogen, farmer and AD operator.
“AD is the unsung hero of the renewable energy sector and we have been looking for an investment in this sector for many years,” said Bruce Davis (pictured), co-founder and managing director of Abundance.
“People like Rob are showing farmers how they can make an important contribution to our green recovery – not only through producing homegrown food, but homegrown energy too.
“Agrogen is a great opportunity for investors to support a circular economy solution that can help UK agriculture to build back better after the pandemic.”
“Agricultural ‘waste’ is a valuable resource, providing not only renewable energy but also fertiliser which can be used on local farms,” said Greenow.
“We want to lead the AD industry by improving our environmental performance even further and this new technology, already used successfully in Austria, offers a greener and better way for farms using AD to generate energy from their waste products.
“We’re excited about enabling like-minded investors to share our enthusiasm!”