NEWSLETTER SIGN UP SUSTAINABLE INVESTMENT Bioenergy Bioenergy is an umbrella term given to technologies that derive renewable energy from recently living organic materials known as biomass, which can be used to produce transportation fuels, heat, electricity, and products. Anaerobic Digestion Anaerobic digestion (“AD”) is the process by which biodegradable wastes (organic materials such as food, agricultural wastes and crops) are broken down by naturally occurring micro-organisms in the absence of oxygen to produce a methane rich biogas. This biogas can either be used in a CHP engine to produce heat and electricity or upgraded to methane and injected into the gas grid. The AD process also produces a nutrient rich substrate which can be used as a substitute to chemical fertilisers. A summary of the AD process is shown below. Case Study: Brocklesby Biogas Brocklesby Biogas is a 3.5MW Anaerobic Digestion ("AD") facility that treats 70,000 tonnes of liquid food waste per annum. The facility is located in North Cave, East Yorkshire. Brocklesky Biogas was established in July 2016. The facility is located adjacent to Brocklesby Fuels Ltd who provide all the feedstock and is the offtake for the heat produced by the CHP's, and some electricity, with the balance of the electricity produced currently exported to the National Grid. Find Out More Biomass Combined Heat & Power (CHP) Biomass power technologies convert renewable biomass fuels into heat and electricity using processes similar to those employed with fossil fuels. At present, the primary approach for generating electricity from biomass is combustion direct-firing. The wood that is provided for the combustion direct-firing process is sourced responsibly in order to offset the CO2 which is produced from the burning. Combustion systems for electricity and heat production are similar to most fossil-fuel fired-power plants. The biomass fuels burned in a boiler to produce high-pressure steam. This steam is introduced into a steam turbine, where it flows over a series of turbine blades, causing the turbine to rotate. The turbine is, in turn, connected to an electric generator. The steam flows over and turns the turbine. The electric generator rotates, producing electricity. This is a widely available, commercial technology. Case Study: Newbridge Energy Iona Capital invested in Newbridge Energy (“NEL”) in June 2016. NEL owns 100% of Blazer’s Fuels Limited, a trading subsidiary. Blazer Fuels manufactures and supplies 6mm ENPlus A1 wood pellets and is listed on the approved biomass suppliers list. The business has also been manufacturing the Blazers fuel logs (“Briquettes”) since 1999 and has a reputation for quality and service. Wood pellets and Briquettes are manufactured from the residue created from the manufacturing of other timber products. Off-cut logs, edge trimmings and chipped timber form the basis of the manufacturing process. Pellets and Briquettes are then bagged in either retail packs, tonne bags or bulk transferred via vehicles. A key part of the transaction was not only to acquire NEL but also to replace an existing old boiler with a new biomass CHP and wood drying equipment. The new biomass CHP qualifies for ROCs and RHI generating significant revenue enhancement for the Company. Sign Up To Our Newsletter Are you interested in learning more about Iona? Why not have our quarterly newsletter outlining all things new at Iona Capital delivered straight to your inbox? Name Email Company Role Institutional Investor Intermediary Advisor Investor Individual Receive Our Newsletter! Iona Capital Ltd. 123 Pall Mall London SW1Y 5EA Tel: +44(0) 20 7064 3300 info@ionacapital.co.uk Key Pages Investment Focus About Team Sustainability Investments News Contact Us Useful Information Terms & Conditions Privacy Policy Cookie Policy © 2021 Iona Capital Ltd. Iona Capital Ltd is authorised and regulated by the Financial Conduct Authority with reference number 121887