Case Studies

Case studies

Here is a selection of case studies from recent projects that we have worked on. For more information about any of them, or for an informal conversation about how Privilege Project Finance might be able to help you please call us on 01223 203398

Murrow AD plant

In 2010, Derek Burgoyne and his business partner John Dale set up a 500kW on-farm anaerobic digestion (AD) plant in Murrow, near Wisbech on their 1,200 acre mixed farm.

Why AD?

Having previously worked within the food manufacturing industry, Derek had historically supplied business partner John with food waste to feed his cattle. The pair often discussed the environmental impacts of AD and decided that they wanted to create a ‘truly sustainable’ AD system.

AD was something they saw great potential in and as such they used their knowledge of the food industry and agricultural backgrounds to set up BioCow, an AD management business.

The Murrow AD plant project

The digester itself operates on around 40 tonnes of feedstock each day, the main source being the manure and bedding produced from their 3,000 cattle. The cattle are fed on a ration of food bi-products, with any leftover food waste also being used in the plant. The food waste is sourced from a number of businesses throughout the Fenland area – all supplied free of charge.

No other crops are grown on farm for the AD plant, enabling the firm to run a truly sustainable AD system. 

The future

Mr Burgoyne and Mr Dale work closely with Privilege Finance to manage two additional plants in Suffolk.

Finance provided

Privilege provided the finance for the Murrow AD plant, which BioCow retained ownership of.

“We used Privilege Finance to help fund the project and the business model they offer is ideal for farmers who want to get into AD. What’s more, they weren’t put off by the significant level of investment we required.”

Derek Burgoyne, BioCow Owner and Director

For more information about this project, or for an informal conversation about how Privilege Project Finance might be able to help you please call us on 01223 203398


Staffordshire AD plant

Background

Rob Greenow owns and operates a 249kW on-farm anaerobic digestion (AD) plant in Staffordshire, on a 1,200 acre mixed farm. He is also the founder of BioG UK, an AD management business, and owns an arable enterprise not too far from the plant.

Why AD?

Having grown up in the farming community, Rob went on to study agricultural business management at The University of Reading and completed his dissertation on ammonia volatilisation and spreading application methods for digestate.

AD was something he saw a great potential in and aged 24 he set up BioG UK, which initially developed AD plants for other farmers but now focuses on plant troubleshooting and operation.

The Staffordshire AD plant project

In 2016, Rob set up his own AD plant on a neighbouring farm where Rob owns and operates the AD plant and the farm receives a rent and income from feedstocks supplied.

The digester itself is a 249kW, and is now operating on approximately 65% maize, wholecrop and grass silage, which is purchased from Batchacre Hall Farm, with the rest of the feedstock being made up of cow manure.

The plant also comprises a 199kW biogas boiler, which allows the farm to dry grain and woodchip faster.

The future

Mr Greenow is currently working on another 800kW anaerobic plant in Oswestry, which Privilege is also funding as well as another 800kW AD plant in a partnership in Scunthorpe.

Finance provided

Privilege provided the finance for the Staffordshire AD plant, which Rob retained ownership of.

“Privilege Finance were willing to act quickly and trusted in my expertise. As long as I meet the parameters Privilege will essentially leave me to it, although I know I can always ask them for advice if I need it.”

Rob Greenow, farmer and MD of BioG UK

For more information about this project, or for an informal conversation about how Privilege Project Finance might be able to help you please call us on 01223 203398


Ellough – East Anglia’s largest crop to energy AD plant

Background

Ellough is the biggest gas-to-grid AD plant in the East of England and is fed on 80,000 tonnes of energy crops per year, which are supplied by around 40 farmers in the local area through Ellough Feedstocks.

The plant was refinanced in 2016 and is currently owned by Privilege Finance and operated by AD management experts, BioCow.

Electricity, heat and biomethane

The biogas produced by the AD plant is used within a combined heat and power (CHP) unit to generate heat and electricity for the plant, which is predominantly self-sufficient. There is also a gas purification system attached to the plant, through which the biogas is upgraded to pure biomethane.

The plant currently produces and supplied in excess of 1,000 cubic metres of biomethane to the National Grid Gas Distribution.

National Gas Grid Distribution works closely with the managing operators of the plant, BioCow, to ensure the gas complies with all OFGEM standards as part of their strategy to achieve at least 80 renewable energy project connections by 2020.

Digestate

The digestate, a nutrient-rich fertiliser, produced from Ellough AD plant is spread on local farms, and provides a much needed source of nitrogen, phosphate, potash, sulphur and trace elements.

Finance provided

Privilege refinanced Ellough AD in 2016, and alongside BioCow turned around the performance of the plant for it to operate as successfully as it is today.

For more information about this project, or for an informal conversation about how Privilege Project Finance might be able to help you please call us on 01223 203398


Tievenny – providing further security and stability for future generations

Background

Tievenny AD is a 500kW anaerobic digestion plant in Strabane, Co Tyrone, on a 700-acre dairy farm which is owned and run by third generation farmer Stephen Carson, and his father.

The plant was commissioned in November 2016, and is now operating at full capacity.

Why AD?

Mr Carson originally decided to investigate AD in 2012 when milk prices were low, as he wanted to reduce the effects of market fluctuations on the farm business. It was this that led to him investigating other ways of diversifying his income stream and future proofing the dairy farm.

What feedstock does the plant take?

The plant is fed on 26 to 29 cubic metres of slurry per day, produced from the farm’s herd of 300 British Friesians, which are housed all year-round. The slurry is automatically pumped from the purpose-built slurry store to the AD tank.

In addition, 100 acres of wholecrop rye is grown for feeding to the digester, and the remaining 600 acres of land is used for growing silage for the cows, with a small amount of grass silage fed to the digester.

Electricity and heat

The plant produces enough electricity to maintain itself, the farm buildings and to export to the grid for Renewable Obligation Certificates (ROCs) – a tariff which is secured for the next 20 years.

The heat and electricity is also used within the dairy enterprise where possible, and the farm benefits from some displaced energy costs, such as the cost of electricity for running the parlour, and drying material to use as bedding for the cows.

Finance provided

Privilege provided the finance for the AD plant, as well as undertaking a feasibility analysis as part of the due diligence process.

“Securing funding for the AD plant was a smooth process. Our finance was provided by Privilege Finance, and the support they gave us was impeccable.”

Stephen Carson, Tievenny AD.

For more information about this project, or for an informal conversation about how Privilege Project Finance might be able to help you please call us on 01223 203398


Boyd Bedding – funding expansion

Background

Boyd Bedding of County Tyrone has been manufacturing ‘Blue Frog’ bedding for the worldwide equestrian market since 1996.

The dust-free, heat-sterilised product is manufactured from virgin timber and as a result of company growth, a decision to expand the company’s production facilities was made in 2012 and the new factory was officially opened on 31 August 2016.

The expansion

Boyd was the chosen equine bedding supplier for the London 2012 Olympics, and then they won Export Business of the Year for Omagh in 2013, both of which dramatically increased their profile.

They experienced a sharp increase in sales not only within the UK, but also in exports to Asia and the Far East, and the new facility was key to allowing the business to improve their production capacity and meet increased demand.

Challenges faced

The Boyd expansion was not without its challenges and as a growing company in a niche sector, additional capital was required to support investment in the new production facility. It was at this point that the company sought an alternative funding solution.

 Finance provided

In 2011, Boyd Bedding joined forces with Privilege Finance to fund the development of the factory in Co Tyrone.

“During the four years that we worked with Privilege, we developed a great relationship and they played an important role in enabling us to deliver the expansion.”

Raymond Boyd, managing director of Boyd Bedding

For more information about this project, or for an informal conversation about how Privilege Project Finance might be able to help you please call us on 01223 203398


H M Venn & Sons. Biomass boilers

In July 2015 PPF was approached to fund the installation of Biomass boilers for the purpose of heating chicken houses at H M Venn & Sons Ltd in Lincolnshire.   Paul Venn and his family have been in the poultry industry since 1948 and wanted to move towards a better and more environmentally friendly way of heating broiler houses for their contract with Moy Park and saw the advantages of Biomass heating from a welfare and subsidy perspective. With the support of PPF five 199Kw biomass boilers were installed at the farm within weeks of first contact.

For more information about this project, or for an informal conversation about how Privilege Project Finance might be able to help you please call us on 01223 203398