Retailer invests in Tamar Energy Limited to build 100MW of organic waste-fuelled green power capacity.
Sainsbury's has announced that it has invested in Tamar Energy Limited, a new company focused on producing energy from organic waste matter.
Tamar Ltd was launched today and is backed by a number of investors who are contributing over £65m to establish the business, to develop a UK network of over forty anaerobic digestion (AD) plants. Collectively they will generate 100MW of green electricity over the next five years.
As the UK's leading retailer of AD energy, Sainsbury's is providing its expertise and experience in using this technology. Sainsbury's has clear commitments to protecting the environment and already has a clear zero food waste to landfill policy, with all surplus food waste from stores going to charities or AD to generate green energy. As part of the deal, Sainsbury's will also work with their suppliers to ensure that they have access to Tamar's new AD plants, which will reduce waste in the supply chain.
The project brings together UK and international blue chip partners and investors whose input and expertise will develop the business. The investor group is led by RIT Capital plc and Fajr Capital, alongside the Duchy of Cornwall, Lord Rothschild's Family Interests, Sustainable Technology Investments, Low Carbon Ltd, the management team of Tamar Energy and other private investors.
Sainsbury's Chief Executive Justin King said: "Sainsbury's is the UK's leading retail user of AD so we are delighted to be an investor and strategic partner of Tamar Energy. We will be working closely with our suppliers to ensure they have access to the new plants to help them reduce the environmental impact of their operations, a key strand of our 20 by 20 Sustainability Plan. With the support of our suppliers we are very confident that this new venture will be a success, helping build Tamar Energy into the UK's leading green energy company".
The project was also endorsed by the Government today. Energy and Climate Change Secretary Edward Davey said: "This is the sort of project that will be crucial for keeping the lights on and emissions down in the UK in the coming decades. Getting new investors to come into the clean energy market is one of my priorities. The consortium behind Tamar is a prime example of this, combining familiar high street names with big international investors. Energy from waste has the potential to make a substantial contribution to our renewable energy targets and so I look forward to seeing Tamar's plans come to fruition."
Environment Secretary Caroline Spelman said: "I want the UK to show leadership in anaerobic digestion and this new partnership will set us on that course. This £65 million investment shows there are great business opportunities in this technology, creating heat and power to run homes and businesses and reducing the amount of organic waste that would otherwise lie rotting in landfill. I wish Tamar Energy and their partners every success".
Commenting on the launch, Lord Rothschild, the Chairman of RIT said: "The development of renewable generating capacity is central to the UK Government's energy strategy. We are delighted to have assembled such a strong group of partners, investors and management, to build and develop this important industry in the United Kingdom."
Tamar Energy will be headed by Alan Lovell as Executive Chairman. Mr Lovell was previously the Chief Executive of Infinis Limited, which produces some 10% of the UK's renewable energy, and over three years under Mr Lovell's leadership grew to EBITDA of £75m. Tamar Energy will be strengthened by the acquisition of Adgen Energy, which has an advanced pipeline of projects and a strong management team, including the previous CEO of BiogenGreenfinch, the AD specialist.
Alan Lovell, Chairman of Tamar Energy added: "The underdevelopment of Anaerobic Digestion in the UK is principally driven by a historic lack of financing for the sector. Tamar Energy will be well capitalised by investors, with a pure focus on producing energy from organic waste, rather than as an adjunct to a waste management business. This is a game changing investment which will enable our existing team to capitalise on the substantial pipeline of projects that Adgen has developed - allowing us to rapidly to achieve our scale objectives."
AD uses proven technology to convert organic waste into energy, and provides many benefits compared to other alternative energy technologies. The biogas output is rich in methane and can be used either in a local generating plant to produce electricity, or cleaned and injected into the gas grid.
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