Investment in Tamar Energy Limited

RNS Number : 8833X

Sainsbury(J) PLC

22 February 2012

 



22 February 2012

Sainsbury's invests in Tamar Energy Limited to build 100MW of organic waste-fuelled green power capacity

Sainsbury's has today announced that it has invested £2m in Tamar Energy Limited, a new company focused on producing energy from organic waste matter.

Tamar Ltd was launched today and is backed by a number of investors who are contributing over £65m to establish the business, to develop a UK network of over forty anaerobic digestion (AD) plants. Collectively they will generate 100MW of green electricity over the next five years.

As the UK's leading retailer of AD energy, Sainsbury's is providing its expertise and experience in using this technology. The retailer has clear commitments to protecting the environment and already has a clear zero food waste to landfill policy, with all surplus food waste from stores going to charities or AD to generate green energy. As part of the deal, Sainsbury's will also work with their suppliers to ensure that they have access to Tamar's new AD plants, which will reduce waste in the supply chain.

The project brings together UK and international blue chip partners and investors whose input and expertise will develop the business. The investor group is led by RIT Capital plc and Fajr Capital, alongside the Duchy of Cornwall, Lord Rothschild's Family Interests, Sustainable Technology Investments, Low Carbon Ltd, the management team of Tamar Energy and other private investors.  

Sainsbury's Chief Executive Justin King said: "Sainsbury's is the UK's leading retail user of AD so we are delighted to be an investor and strategic partner of Tamar Energy. We will be working closely with our suppliers to ensure they have access to the new plants to help them reduce the environmental impact of their operations, a key strand of our 20 by 20 Sustainability Plan. With the support of our suppliers we are very confident that this new venture will be a success, helping build Tamar Energy into the UK's leading green energy company".

Tamar Energy will be headed by Alan Lovell as Executive Chairman.  Mr Lovell was previously the Chief Executive of Infinis Limited, which produces some 10% of the UK's renewable energy, and over three years under Mr Lovell's leadership grew to EBITDA of £75m.  Tamar Energy will be strengthened by the acquisition of Adgen Energy, which has an advanced pipeline of projects and a strong management team, including the previous CEO of BiogenGreenfinch, the AD specialist.

Enquiries:
Investor Relations	Media
Erica Judge	Mark Rigby/Tara Hicks
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