This investment is for a 1 year, Short Term Debenture.
Monnow Valley CHP is issuing this Debenture to install up to 10 Combined Heat & Power units and two biomass boilers in Herefordshire. Once constructed, the units will supply electricity to a neighbouring business park and become eligible for government subsidies.
All being well, the biomass boilers and CHP units are expected to be installed and commissioned by the end of March 2017.
This one year bond will be refinanced by a long term Debenture at the end of its term.
Monnow Valley CHP is offering a Short Term Debenture. This is a 1 year Debenture that pays a fixed annual interest rate of 12%. Your capital is repaid in full at its maturity. Investors will receive two interest payments – one at six months, the other at maturity.
Monnow Valley CHP is the company set up to own and manage the CHP and biomass units that form this project. It is from Biomass Partners UK Ltd, the same team that brought you Monnow Valley Biomass. Once built the project will earn revenue from government subsidies including ROCs and the RHI, as well as from selling both the electricity and the heat.
This project is looking to raise a minimum of £2,450,000 and up to £3,900,000 to install up to two biomass and 10 Combined Heat & Power units adjacent to a business park in Herefordshire. At maturity, this Short Term Debenture is expected to be refinanced by another Debenture offer on Abundance.
Biomass fuel is sustainable and renewable. The fuel (wood chips) can be regrown relatively quickly and it takes as much carbon dioxide from the air to grow as it emits once burnt. As far as possible the wood chip will be locally sourced.
The energy produced will also be locally consumed. With around 8% of electricity produced in the UK currently lost in transmission this adds up to a big improvement in energy efficiency. Local generation like that Monnow Valley CHP will provide has the potential for big emissions reductions.
All the businesses at Sigeric Business Park will use the electricity generated by the units in Monnow Valley CHP. This project offers them long term, consistent electricity prices.