AAA J Sainsbury helps Tamar raise $102m

J Sainsbury helps Tamar raise $102m

UK-based supermarket chain J Sainsbury has joined the estate of Prince Charles and other investors helping Tamar Energy, a producer of energy from organic waste, launch with £65m ($102.1m) funding.

Tamar Energy said yesterday it would develop a UK network of more than forty "anaerobic digestion [AD]" plants to generate 100MW of green electricity in the next five years.

Justin King, chief executive of J Sainsbury said: "Sainsbury’s is the UK’s leading retail user of AD so we are delighted to be an investor and strategic partner of Tamar Energy. We will be working closely with our suppliers to ensure they have access to the new plants to help them reduce the environmental impact of their operations, a key strand of our 20 by 20 Sustainability Plan. With the support of our suppliers we are very confident that this new venture will be a success, helping build Tamar Energy into the UK’s leading green energy company".

Alan Lovell, previously chief executive of UK-based renewable energy producer Infinis, is executive chairman of Tamar.

The investor group alongside J Sainsbury was led by investment firms RIT Capital Partners and Fajr Capital, and also included investors Lord Rothschild’s Family Interests, the Duchy of Cornwall, Prince Charles’ private estate, Sustainable Technology Investments, Low Carbon Limited, and the management team of Tamar Energy as well as other private investors.

Tamar said the deal was an opportunity for the UK to increase usage of anaerobic digestion, as European neighbour Germany has 100 times the number of plants.

The UK’s energy and climate change secretary Edward Davey said: "This is the sort of project that will be crucial for keeping the lights on and emissions down in the UK in the coming decades. Getting new investors to come into the clean energy market is one of my priorities. The consortium behind Tamar is a prime example of this, combining familiar high street names with big international investors. Energy from waste has the potential to make a substantial contribution to our renewable energy targets and so I look forward to seeing Tamar’s plans come to fruition."

The UK’s environment secretary Caroline Spelman said: "I want the UK to show leadership in anaerobic digestion and this new partnership will set us on that course. This £65 million investment shows there are great business opportunities in this technology, creating heat and power to run homes and businesses and reducing the amount of organic waste that would otherwise lie rotting in landfill. I wish Tamar Energy and their partners every success."

 

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