Fresh produce companies will be able to access a £10 million loan scheme as the government looks to drive up anaerobic digestion in the UK.
DEFRA minister Lord Henley has officially unveiled the loan fund which is run by the Waste & Resources Action Programme (WRAP).
Over the next four years, it is hoped the fun will lend up to £10m of individual loans of between £50,000 and £1m to businesses to address the gap in anaerobic digestion processing capacity.
Government estimates AD could produce 7.5 per cent of the renewable power the UK will need by 2020.
WRAP is accepting the first round of funding applications from businesses until 31 October 2011.
Lord Henley said: “The Loan Fund builds on the Anaerobic Digestion Strategy and Action Plan to develop a strong and vibrant AD industry. It will help to reduce the amount of food sent to landfill and give more businesses the opportunity to use AD to produce their own power and electricity.”
According to WARP, some 656,500 tonnes of organic waste a year is processed using AD in the UK and the new fund could create 300,000 tonnes of extra capacity bringing the UK’s AD processing capacity close to one million tonnes per year.
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