Gresham House’s British Strategic Investment Fund (BSIF) is investing in a fuel pelleting facility in Teeside that will produce high-calorific value fuel from waste that would otherwise be landfilled.
The facility will produce Waste Knot Energy’s pellets that originate from non-recyclable waste.
The high-calorific value of the pellets makes them a reliable, low-emission bulk alternative to coal and pet-coke for energy-intensive industries, such as cement and steel, said Waste Knot.
Once completed, the plant will create over 20 full time jobs and revenue within the region.
The factory will manufacture in excess of 240,000 tonnes of fuel pellets each year, which will be transported within the UK by rail or exported by ship.
The plant is being developed on a brownfield site owned by AV Dawson, a Teesside-based freight logistics specialist with a 40-hectare port facility in Middlesbrough.
BSIF invests in sustainable UK housing and infrastructure, with emphasis on the smaller mid-market, via investments in local and regional projects.
Waste Knot Energy founder Roger Ferguson said: “The circular economy demands that we re-use materials wherever possible and landfill should always be avoided. Green Knot pellets are the future of fuel, to sit alongside other sustainable power generation.”
BSIF fund manager Ed Simpson said: “The benefits to the UK from the Waste Knot Energy project are myriad, from providing a waste disposal alternative to reducing carbon emission from the industrial sector and stimulating regional economic activity.
“Having just completed its final funding round, this is exactly the type of strategically important sustainable project BSIF is looking to facilitate, while generating attractive returns for investors.”
Tees Valley Mayor Ben Houchen added: “It is fantastic to see Teesside landing the first plant for this exciting new project.
“Whether it is Net Zero Teesside, e-scooters or pioneering the use of hydrogen across Teesside, Darlington and Hartlepool we are developing the technologies of the future and creating sustainable good quality well paid local jobs for local workers.
“This amazing news further supports our ambitions to drive forward the clean energy agenda; further cementing our region’s reputation as an innovator and world leader in decarbonisation.”