Ludgate Environmental Fund Limited, (“LEF” or the “Fund”) the AIM-listed investment company focused on companies within the environmental/cleantech sector has announced it has invested
€3 million into agri.capital, the specialist developer, owner and operator of biogas plants in Germany. The investment has been structured as 8% preferred stock with detachable warrants and is part of a €10 million funding round into agri.capital with Valiance Special Situations Fund investing alongside LEF.
agri.capital was established in 2004. The business uses manure and various crop silages as feedstock to produce biogas as they decompose. This methane-rich gas mixture is either burned onsite to create electricity or cleaned to biomethane and fed into the existing German natural gas network. The fermentation residue is used as a high-quality fertilizer, returning nutrients to the soil.
Germany has approximately 16.8 million hectares of agricultural land, less than 2% (some 300,000 hectares) of which is currently used for biogas feedstock production. Each year, efficiency and productivity increases in the German agricultural sector free up approximately 180,000 hectares of land for agricultural use. A study carried out by the Leipziger Institut für Energetik und Umwelt in 2007 concluded that, by 2020, the natural gas supply of the EU and Turkey could be replaced by bio-methane without impact on the agricultural self-sufficiency for food production.
Nick Pople, Director of Ludgate Investments Ltd, LEF's Investment Adviser said: “agri.capital uses proven technology, has high and predictable cash flows and can rapidly roll-out fixed-price plants. The Company has secured locked-in feedstock contracts and plants have stable revenue streams. By combining construction, facility and resource management, financing, logistics and contracting operations in-house, agri.capital is able to efficiently provide reliable, renewable baseload power and heat to the German market.”
Bernd Hugenroth, CEO and Founder of agri.capital said: “We are delighted to receive this investment from Ludgate Environmental Fund. Our current portfolio includes more than 100 biogas plants in different project stages and over 200 farmers working in partnership with us. This investment will enable financing of the continued expansion of our business.”