A Fleetwood-based recycling business is set to be the first company in the UK to offer a new renewable energy product after securing a £575,000 debt funding package.
Lancashire Waste Recycling was founded in 2010 by serial entrepreneurs Paul Mellor and Jim Entwisle on a site next to a waste processing plant. It specialises in taking household waste destined for landfill and turning it into fuel. It has a sister company, Envirofuel, which was established in 2016.
The company has secured the funding boost from Lancashire Rosebud Finance and NPIF – FW Capital Debt Finance, which is part of the Northern Powerhouse Investment Fund. It will use the funds to invest in new plant, expand its market and create 15 jobs over the next three years.
Lancashire Waste Recycling will be the first in the UK to offer solid renewable fuel (SRF) pellets, which are in growing demand worldwide as a replacement for coal in heavy industry. Currently the business produces fuel in the form of shredded material which is used in cement kilns. Now it is acquiring biomass boilers and plant to dry out the fuel and turn it into pellets, which can be used in almost any industry. The investment will allow the company to offer a product that is of better quality and more environmentally friendly than other manufacturers, which make pellets from rubber tyres.
Rosebud Finance is managed by Mercia Fund Managers on behalf of Lancashire County Developments, the county council’s development arm.
Peter Rooney, investment manager with Mercia Fund Managers, said: “Lancashire Waste Recycling has been a pioneer in the industry. Turning waste into fuel significantly reduces the amount sent to landfill and provides a more environmentally-friendly alternative to coal.
“This investment will create a step change in the business, allowing it to become the UK’s first fuel pellet producer and the market leader in its field.”
County councillor Michael Green, cabinet member for economic development, environment and planning, added: “The team at Lancashire Waste Recycling spotted a gap in the market, developed a high-quality product and since then they’ve significantly grown their company.
“Rosebud previously supported this company, and we’re proud to assist them once again. It’s always a strong endorsement when people come back to Rosebud for the support they need to fulfil their growth ambitions.”
NPIF – FW Capital Debt Finance is managed by FW Capital on behalf of the British Business Bank.
Andy Traynor, senior investment executive at FW Capital, said: “Our investment is helping Lancashire Waste Recycling meet growing demand in an expanding world-wide market, which will enable them to create new jobs and revenues in the North West.
“Cutting both carbon emissions and the volume of domestic waste that goes to landfill, reducing the UK’s reliance on imported fuels, and enhancing energy diversity and security for our industries are all direct benefits of this exciting technology.”
Lancashire Waste Recycling was advised by the corporate finance team at MHA Moore and Smalley.