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Here you will find information on financing anaerobic digestion projects.
Use the tabs at the top of the page to see funding information specific to England, Scotland or Northern Ireland.
The Feed-in Tariff (FiT) and Renewable Heat Incentive (RHI) schemes are intended to replace, not supplement, public grant schemes as the principal means of incentivising small-scale, low-carbon electricity generation. Because of this, and to ensure value for money for consumers and compliance with EU law on state aids, it is generally not possible for a generator to benefit from both FITs/RHI and a grant from a public body except in specific circumstances.
Capital Grant Aid
Capital grant schemes are available (but are not vital) to support AD plant construction. Regional funding for AD projects is available through the Regional Development Agencies (RDAs). The conditions for receiving funding vary by region. Follow the link for England or Wales, to contact your Development Agency.
Enhanced Capital Allowance
The Enhanced Capital Allowance Energy scheme provides businesses with enhanced tax relief for investments in equipment that meets published energy-saving criteria. With CHP, case by case Certification is needed to ensure support is provided for ‘good quality’ CHP. Certification is achieved using the CHP Quality Assurance programme (CHPQA). Renewables East provide a simple guide to CHPQA and ECA for biomass projects.
Gate Fees
Organic residues from third parties can attract a gate fee. However, when creating a business plan it is important to remember the value of gate fees can fall significantly. See the Wastes page for more information and the Regulations page for more on the regulations behind waste handling.
Carbon Trust Loan
The Carbon Trust provide 0% interest loans to businesses investing in energy saving equipment. Loans are available from £3,000 to £20,000. The loan amount is dependent on the size of the overall investment and the CO2 savings of the project. Find out how to apply for a Carbon Trust loan.
WRAP Anaerobic Digestion Loan Fund (ADLF)
The ADLF is a £10m fund designed to support the development of new AD capacity in England. The fund can provide asset backed loans for plant, machinery and/or groundworks. The loan is for between £50,000 and £1,000,000, requests above this figure will be considered only at the discretion of the Investment Committee. The maximum term of the loan is five year though early repayment or shorter terms are regarded favourably. More details can be found on the WRAP website.
Environmental Transformation Fund (ETF)
The Environmental Transformation Fund (ETF) is the UK’s financial commitment to tackling climate change within the UK and developing countries. WRAP, with support from the Carbon Trust, is delivering the Anaerobic Digestion Demonstration Programme. The progress of the 5 projects selected for funding, including photos, can be followed on the WRAP website.
Other Grant Aid and Support
WRAP provides funding on occasion, including capital grants. WRAP's Organics Funding Guide provides information on support for bio-energy and food waste processing projects.
Private Equity
Private equity finance may also be an option. To read more about what banks and financiers may be looking for, see page 75 of this report into the economics of AD by the NNFCC and Andersons Centre.
For information on incentives like Feed-in Tariffs (FiTs), Renewable Heat Incentive (RHI) and Renewables Obligation (RO), see the Incentives page.
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Capital Grant Aid
Capital grant schemes are available (but are not vital) to support AD plant construction. Regional funding for AD projects is available through the Regional Development Agencies (RDAs), Scottish Enterprise is the RDA in Scotland. To contact them please visit the Scottish Enterprise website.
Enhanced Capital Allowance
The Enhanced Capital Allowance Energy scheme provides businesses with enhanced tax relief for investments in equipment that meets published energy-saving criteria. With CHP, case by case Certification is needed to ensure support is provided for ‘good quality’ CHP. Certification is achieved using the CHP Quality Assurance programme (CHPQA). Renewables East provide a simple guide to CHPQA and ECA for biomass projects.
Gate Fees
Organic residues from third parties can attract a gate fee. However, when creating a business plan it is important to remember the value of gate fees can fall significantly. See the Wastes page for more information and the Regulations page for more on the regulations behind waste handling.
Carbon Trust Loan
The Carbon Trust provide 0% interest loans to businesses investing in energy saving equipment. Loans are available from £3,000 to £20,000. The loan amount is dependent on the size of the overall investment and the CO2 savings of the project. Find out how to apply for a Carbon Trust loan.
Environmental Transformation Fund (ETF)
The Environmental Transformation Fund (ETF) is the UK’s financial commitment to tackling climate change within the UK and developing countries. WRAP, with support from the Carbon Trust, is delivering the Anaerobic Digestion Demonstration Programme. The progress of the 5 projects selected for funding, including photos, can be followed on the WRAP website.
Other Grant Aid and Support
Zero Waste Scotland has a range of support available which, at times includes the provision of funding. Please visit the Zero Waste Scotland funding webpage to see updates on the opportunities available.
The CARES Loan Fund is available from the Scottish Government's Community and Renewable Energy Scheme and was launched on 15th February 2011. It is a new scheme which aims to provide loans towards the high risk, pre-planning consent stages of renewable energy projects (including AD) which have significant community engagement and benefit. Community Energy Scotland is supporting applicants to this scheme.
Private Equity
Private equity finance may also be an option. To read more about what banks and financiers may be looking for, see page 75 of this report into the economics of AD by the NNFCC and Andersons Centre.
For information on incentives like Feed-in Tariffs (FiTs), Renewable Heat Incentive (RHI) and Renewables Obligation (RO), see the Incentives page.
Return to the top of the page.
Capital Grant Aid
Capital grant schemes are available (but are not vital) to support AD plant construction. In Northern Ireland, funding for AD projects is available through the Department of Agriculture and Rural Development for Northern Ireland's (DARDNI) Biomass Processing Challenge Fund. The conditions for receiving funding through the Biomass Processing Challenge Fund are available at the DARDNI website.
Enhanced Capital Allowance
The Enhanced Capital Allowance Energy scheme provides businesses with enhanced tax relief for investments in equipment that meets published energy-saving criteria. With CHP, case by case Certification is needed to ensure support is provided for ‘good quality’ CHP. Certification is achieved using the CHP Quality Assurance programme (CHPQA). Renewables East provide a simple guide to CHPQA and ECA for biomass projects.
Gate Fees
Organic residues from third parties can attract a gate fee. However, when creating a business plan it is important to remember the value of gate fees can fall significantly. See the Wastes page for more information and the Regulations page for more on the regulations behind waste handling.
Carbon Trust Loan
The Carbon Trust provide 0% interest loans to businesses investing in energy saving equipment. Loans are available from £3,000 to £20,000. The loan amount is dependent on the size of the overall investment and the CO2 savings of the project. Find out how to apply for a Carbon Trust loan.
Environmental Transformation Fund (ETF)
The Environmental Transformation Fund (ETF) is the UK’s financial commitment to tackling climate change within the UK and developing countries. WRAP, with support from the Carbon Trust, is delivering the Anaerobic Digestion Demonstration Programme. The progress of the 5 projects selected for funding, including photos, can be followed on the WRAP website.
Other Grant Aid and Support
WRAP provides funding on occasion, including capital grants. WRAP's Organic Funding Guide provides information on support for bio-energy and food waste processing projects.
Private Equity
Private equity finance may also be an option. To read more about what banks and financiers may be looking for, see page 75 of this report into the economics of AD by the NNFCC and Andersons Centre.
For information on incentives like the Northern Ireland Renewables Obligation (NIRO), see the Incentives page.
Return to the top of the page.
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