15th Dec 2008 15:33
Ludgate Environmental Fund invests €3 million in leading German biogas company
Ludgate Environmental Fund Limited, ("LEF" or the "Fund") the AIM-listed investment company focused on companies within the environmental/cleantech sector has announced it has invested €3 million into agri.capital, the specialist developer, owner and operator of biogas plants in Germany. The investment has been structured as 8% preferred stock with detachable warrants and is part of a €10 million funding round into agri.capital with Valiance Special Situations Fund investing alongside LEF.
agri.capital was established in 2004. The business uses manure and various crop silages as feedstock to produce biogas as they decompose. This methane-rich gas mixture is either burned onsite to create electricity or cleaned to biomethane and fed into the existing German natural gas network. The fermentation residue is used as a high-quality fertilizer, returning nutrients to the soil.
Germany has approximately 16.8 million hectares of agricultural land, less than 2% (some 300,000 hectares) of which is currently used for biogas feedstock production. Each year, efficiency and productivity increases in the German agricultural sector free up approximately 180,000 hectares of land for agricultural use. A study carried out by the Leipziger Institut für Energetik und Umwelt in 2007 concluded that, by 2020, the natural gas supply of the EU and Turkey could be replaced by bio-methane without impact on the agricultural self-sufficiency for food production.
Nick Pople, Director of Ludgate Investments Ltd, LEF's Investment Adviser said: "agri.capital uses proven technology, has high and predictable cash flows and can rapidly roll-out fixed-price plants. The Company has secured locked-in feedstock contracts and plants have stable revenue streams. By combining construction, facility and resource management, financing, logistics and contracting operations in-house, agri.capital is able to efficiently provide reliable, renewable baseload power and heat to the German market."
Bernd Hugenroth, CEO and Founder of agri.capital said: "We are delighted to receive this investment from Ludgate Environmental Fund. Our current portfolio includes more than 100 biogas plants in different project stages and over 200 farmers working in partnership with us. This investment will enable financing of the continued expansion of our business."
About Ludgate Environmental Fund Limited:
Ludgate Environmental Fund Limited ("LEF" or "the Fund") is a Jersey domiciled closed-ended investment company, listed on AIM under the symbols LEF.L for the shares and LEFW.L for the warrants. The Fund was launched in August 2007, raising £26.7 million at listing. A further £3.0 million was raised by the Fund in February 2008. A further £18 million was raised in November 2008.
As at 30 October 2008 Net Asset Value per share was 108.71p (compared to 97.3p at AIM Admission on 2 August 2007).
The environmental/cleantech sector is characterised by products and services which optimise the use of natural resources while reducing environmental impact in ways that enhance economic value. Opportunities include: energy efficiency and alternative energy sources including renewable energy; water treatment and management; waste management and resource recovery; industrial process advances and emission reduction technologies.
LEF was launched to enable experienced and sophisticated investors to participate in a diverse portfolio of investment holdings in environmental/cleantech companies. LEF believes that there are a number of key drivers of growth, both in terms of business and investment activities, within this sector including:
increasing demand for, and decreasing supply and security of, natural resources;
rising concern over the economic costs of waste accumulation and pollution;
growing awareness of environmental issues amongst the public; and
environmental technology advances in recent years.
The Fund's Investment Adviser, Ludgate Investments Limited ("LIL"), has significant experience and a successful track record of investing in environmental/cleantech companies. LIL takes an activist approach to building its portfolio companies and working with them to achieve growth.
Website: www.ludgateenvironmental.com
Related Shares:
LEF.L