Massive Investment in new food waste to electricity business

Tue 21 Aug 2012

It was announced to the stock exchange today (31st July 2012) that market leaders in anaerobic digestion (AD), BiogenGreenfinch, has formed a new joint venture company with construction and property giants, Kier.  Under the deal, Kier Services is investing £24.4 million pounds in the new business matching the investment 
already made by BiogenGreenfinch’s parent company, Bedfordia of Milton Ernest in Bedfordshire.  The new company will be known as Biogen.

John Ibbett, Chairman of Bedfordia Group and Biogen says, “This partnership places Biogen at the forefront of the green energy industry.  Kier Services recognises anaerobic digestion as a technology which has massive significance for recycling food waste, generating sustainable electricity and cutting greenhouse emissions now and for the foreseeable future.  To Biogen’s existing experience and expertise in the industry we are now adding the financial weight of Kier’s £2.2bn annual revenues and their skills in the construction industry which will have big implications for the building of future AD plants.”

While Biogen will continue to operate much as BiogenGreenfinch has done up until now, the joint venture will be far better placed to pursue an ambitious growth strategy and place it as the UK’s premier renewable energy company.  With three fully operational AD plants already in Bedfordshire, Northamptonshire and Shropshire the company already has a contract to build a fourth in Caernarfon and is preferred bidder for a fifth in Denbighshire.   On top of that the business operates a design and process engineering base and groundbreaking R&D laboratory in Ludlow, Shropshire and is the UK’s only AD business which designs and builds all its own plants.

“We would like to think this will be great news for everybody,” John Ibbett says.  “Clearly, with the business synergies the two founding organisations have we can be very helpful to each other.  For our existing customers it means they can be confident that Biogen will have a formidable financial base to go along with our acknowledged skills in the industry.  Local authorities which already regard Kier as a trusted partner will recognise that AD is the best method, economically and environmentally, for disposal of food waste.  Hopefully our staff will see it as greatly adding to their job security and that they’re part of a fast growing business with a bright future.”

The new company’s board will comprise five members from BiogenGreenfinch and three from Kier Services.  As part of the business growth strategy they will be managing investment in new AD plants around the country with the intention to have a further six fully operational by June 2017 and two others by the end of June 2018.

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