Land Energy secures £6m funding to create new sustainable heating product line
Biomass fuel manufacturer Land Energy (LE) has secured £6m in funding from Independent Growth Finance (IGF). The asset business lending (ABL) package includes invoice finance, inventory and equipment facilities. The significant working capital will enable the company to expand its operations and develop a new, clean-burning briquette aimed at the domestic solid fuel market.
Land Energy, based in Scotland, was founded in 2006 by a group of entrepreneurs determined to reduce pollution caused by the UK’s energy industry. Its initial focus was on biomass energy sources to create a viable wood pellet manufacturing base. Over the past 15 years, the company has become one of the largest wood pellet manufacturers in the UK. It now supplies both commercial and domestic markets under its various brands and is focused on de-carbonising the heat market.
Sustainability is at the heart of the LE ethos and influences all aspects of its operations. As a result, it has been awarded Proud Supporter status with UNESCO’s Galloway and Southern Ayrshire Biosphere – and it is the Sustainable Leader within its industry.
LE products are made from entirely sustainable local sources, and it focuses on markets that can make a real difference in helping to reduce the UK’s carbon footprint. LE supplies many hospitals and care homes across the UK, which use its wood pellets for heating and hot water. LE also supplies domestic users.
Via their shareholder, BRG Asset Management, LE entered discussions with IGF, and as a result, rapid and flexible financing options were identified.
John Westmacott, Managing Director of Land Energy, commented: “It was clear to us from the outset that IGF understood our business and was able to develop appropriate financing solutions. This gives us access to capital which enables us to fund expenditure on the new plant. Importantly, this financing will ensure the plant becomes revenue-generating in the shortest possible time. We view this initial finance facility as the first stage in our relationship with IGF, and we look forward to working with them as our business continues to grow.”