Independent financial organisation Floreat Group is investing $50m in the UK biomass sector and has set up FCM Bioenergy, trading under the name Vesta.
Vesta is an energy supply company that will specialise in low-cost, long-term green energy contracts using biomass aimed at the manufacturing, agriculture and care home sectors.
The venture will be funded through a mixture of equity and debt, all funded privately by the group.
Vesta principal and Floreat Capital Markets partner Ben Churchill said: “The group has been following the renewables sector for some time looking for the right entry point and we are pleased to make our first investment.
“Through both acquisitions of existing ESCOs and by developing new sites we are aiming to build a portfolio generating around 40MW over the next 24 months.
“On the acquisition side we are targeting ESCOs from 199kW upwards, which are linked to the small, medium and large scale renewable heat incentive schemes.
“We have ambitious plans and believe this aggregation play presents an excellent opportunity to build a large independent ESCO.”
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