Monsal wins £14m for expansion

MONSAL, a Notts-based advanced digestion technology business that turns waste into renewable energy, has unveiled expansion plans after securing £14m.

The Mansfield company provides anaerobic digestion and advanced anaerobic digestion with the largest team of biogas-to-energy technology specialists.

It designs digestion systems which are then contracted out to be manufactured. The firm then carries out the installation.

Decomposing food is fermented, giving off biogas which is converted into electricity.

Monsal employs about 40 staff and the finance will allow the firm to recruit sales, technology and engineering staff over the next 12 months.

Monsal is recruiting to meet what it says is the growing demand for anaerobic digestion.

Up to £10m will be used to set up joint ventures through a new subsidiary, Monsal Energy.

Monsal believes there is a market for around 200 digesters in the UK as the Government and European Union imposes tough regulations for the disposal of foods including banning food deposits in landfill sites.

Waste Resources Fund, set up to invest in firms in the waste management industry, has provided up to £14m. It will take a significant minority equity stake in Monsal.

Monsal managing director Aidan Cumiskey said that working with partners Monsal Energy will identify and develop projects in the biogas sector using anaerobic digestion.

He said: "WRF's investment is a very significant step forward for our business and gives us a unique business model for the anaerobic digestion market in the UK.

"We are going to strengthen our wastewater anaerobic digestion credentials through expansion and play a leading role in financing anaerobic digestion infrastructure over the coming years.

"We believe that there is no other competitor in the market able to fully capitalise on the opportunity to build and operate the estimated 200 food waste anaerobic digestion plants that are expected to be developed by 2020," said Mr Cumiskey.

Joint ventures will allow Monsal Energy's expertise and experience to build schemes quickly.

Monsal was founded in 1996 and was bought out by its management in 2007. It works closely with the water utilities which are looking for non-regulated business and has just installed one of the largest food digesters in the UK for Scottish Water.

Monsal shareholders were advised by the Nottingham office of Eversheds.