Kedco to invest £1.5m for biomass plant construction in Ireland

UK-based Newry Biomass has secured a £1.5m loan through non-binding indicative terms, pertaining to a venture capital trust investment.

The loan will be used as a working capital as well as for the construction of the second phase of the 4MW biomass gasification project, which is expected to export electricity to the grid.

Newry Biomass is currently involved in a joint venture with renewable energy group Kedco and operates their renewable energy electricity and heat generating plant in Newry, Northern Ireland.

Commenting on the transaction Kedco CEO Gerry Madden remarked "Having attracted funding support from both a major bank and VCTs, we are confident that we are pursuing the right business model for commercialising UK Renewable Energy projects that can provide strong visibility on earnings.

"With the purchase of the Pluckanes project, Reforce has added a construction ready asset to its portfolio, which is targeted to become operational during 2013."

"Having attracted funding support from both a major bank and VCTs, we are confident that we are pursuing the right business model for commercialising UK Renewable Energy projects that can provide strong visibility on earnings," Madden added.

"Assuming the completion of the acquisition of Reforce this will increase Kedco’s operational capacity by 40 per cent."