Biomass Investment Fund 21

24% Return after 3 years*

Early investors partiipating in the second tranche of the investment will benefit from the maximum gross return of 24% at the end of the three year term (up to 8% simple interest per annum). Subject to uptake of the investment, the return on any subsequent tranches will be reduced by one percentage point for each tranche.

Asset Backed Investment

Solar 21 Renewable Energy Ltd is acquiring 100% of the shares in Gascorp (Plaxton) Ltd, a UK-registered company that owns the rights for the construction of an anaerobic digestion plant located near Hull (UK). The plant will produce up to 5.4M m2 of biomethane gas, enough for 3,700 homes.

Who should Invest?

The minimum investment is €20,000. Biogas 21 enables conscientious investors to participate in an ethical company without sacrificing returns. This investment opportunity is suitable for direct cash investments and self-directed/administered pension funds. Non-pension investors may also participate, however, it is likely that the return would be subject to CGT.

Independent Valuation by Ernst & Young(EY)

On the basis that the biogas plant will be energised by Q3 2018, the valuation is estimated at £27m. This valuation has been independently verified by leading financial services firm EY. It is available to be viewed, subject to signing a standard release letter, at EY’s offices in Dublin.

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Government Backed Revenue

Support in the UK is in place for AD in the form of the government backed Renewable Heat Incentive (RHI). The Non-Domestic Renewable Heat Incentive (RHI), provides financial incentives to increase the uptake of renewable heat by businesses, the public sector and non-profit organisations. Eligible installations receive quarterly payments over 20 years based on the amount of heat generated. The scheme covers England, Scotland, and Wales.

Construction & Performance Guarantees

The Construction Contractor will provide a construction warranty and minimum production guarantees. The construction warranty will be underwritten by a guarantee with Barclays bank. The production warranty will also be provided by a major financial institution to reflect a minimum output of 4.4M m2 of biomethane gas for 5 years when the plant is fully operational.

Brexit

What is the impact of Brexit on UK energy policy & the Renewable Heat Initiative (RHI)?
We believe that the decision to exit the EU will not have any impact on UK energy policy given that the UK is bound by national and international decarbonisation obligations. Indeed, Britain’s own unilateral Climate Change Act 2008 imposes even tougher requirements for cutting carbon emissions than those set out by the EU. Under the Act, the UK must cut its carbon emissions by 80 per cent on 1990 levels by 2050.

Security of Supply - Feedstock

The plant feedstock will be comprised of potato processing waste and proflo syrup, with a number of large potato and proflo suppliers in the local area. Feedstock supply contracts will be put in place over the next 18 months with suppliers in the local area. The plant will require 55,000 tonnes per annum of potato pulp and other potato residue. Potato processors are the largest buyers of British potatoes, processing approximately 1.7m tonnes of potatoes p.a. .Proflo syrup is a by-product of ethanol production. It is produced from the liquid remaining after the ethanol has been distilled off and the fibres removed.

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What is Biogas?

Biogas Explained

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Warning
Past performance is not necessarily a guide to future success. The value of your investment, and the income you receive from your investment, may go down as well as up. You risk losing some or all of your investment.
Warning

The provision of this product does not require licensing, authorisation or registration with the Central Bank of Ireland. Therefore, it is not covered by the Central Bank’s requirements designed to protect consumers or by a statutory compensation scheme.

Warning
Any investor seeking to decide on whether or not to invest should read the Application Form, Information Memorandum and legal documentation to review the full terms of the investment. A limited number of application forms are available for each loan note.

About Cregan Kelly O'Brien

 

In 2007 Maurice Cregan and Colm Kelly established CK Financial Services to provide independent financial planning and advice to business owners and individuals. Tommy O'Brien, a General Insurance expert, then joined them in 2010, enabling them to meet the full financial needs of their clients. The group has since been renamed Cregan Kelly O'Brien.

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