AeroThermal Group seeks financing to help set up its first waste-to-energy conversion project and to fund a second, larger project, CEO ian Toll said: The UK based Company, whose technology turns waste into biogas, plans to sell stakes in the individual projects in exchange for financing. It also could discuss selling a stake in the Company itself, Toll said, but its shareholders have a five year business plan in place.
AeroThermal is in discussions with existing shareholders Bridges ventures and The Carbon Trust on whether they will provide partial or full financing for the projects, the CEO said. The two venture capital firms funded the initial planning for AeroThermal's Anaerobic Digestion (AAD) system in exchange for a 10% stake in the Company earlier this year.
The Company needs to raise up to GBP 10m in order to set up a plant with the capacity to handle up to 50,000 tonnes of waste for its first project. It is already in negotiations for two different building sites. "The investment will be to convert existing buildings, as both sites have infrastructure," Toll said. "It will also support the cost to assemble and install the AAD system, other equipment and a biogas tank."
AeroThermal aims to secure the funds for its first project before the end of this year, and expects to get planning permission to start work on the project within 12 months.
The Company is also seeking GBP 25m for it ssecond project, which requires building a 100,000 tonne plant, Toll said. It is in talks with a waste management to form a join venture for the project, with the waste management company providing a waste stream and AeroThermal and its investors the equipment and funding to buold the plant.
AeroThermal is also holding informal conversations with a private equity firm interested in investing waste-to-energy projects, but is also keen to hear from other investors, the CEO said. It is evaluating three potential sites for the second project, none of which has infrastructure.
The Company employs 25. Toll and the other founders are the largest shareholders in the business. BDO advised AeroThermal on the 10% stake sale to Bridges Ventures and The Carbon Trust.