Recycling Facilities Investment

A unique opportunity for investors to profit from landfill diversion and renewable energy - the recovery of energy from waste is now both
economically viable and profitable
 

The New Earth Group is operating and developing large scale Waste Treatment Facilities across the UK which receive carbon based waste from local authorities and process the material to recover and recycle (metal, glass etc.) as well as producing high quality compost.

Biomass rich feedstock is also produced for subsequent use in company developed waste to renewable energy power stations.

Revenue is generated from gate fees of waste delivered for waste treatment and from energy and heat production generated from the recycled waste.

Future revenue streams are provided by securing medium to long term local authority waste collection contracts which create stable returns for investors. 

Click On The YouTube Icon Below To Watch A BBC Programme Outlining How Some Of The New Earth Processes Work


 

 

 


New Earth Fund Presentation - PDF  New Earth Performance - January 2012


Investment objective, background and strategy

Each of the New Earth Sub-Funds aims to provide long term growth by investing directly or indirectly in Recycling Facilities in the United Kingdom and in the development of such facilities, Recycling Facilities being defined for this purpose as industrial facilities for the processing and treatment of waste, including the recycling of waste, the treatment of waste, the preparation of waste for use in waste to energy and the conversion of waste to energy by any means.

Each investment into Recycling Facilities is on a joint venture basis with the New Earth Group. Investment is made in Recycling Facilities when they are in development and once operational.

The development and operation of these Recycling Facilities is managed by an experienced and well-resourced management team from the New Earth Group who possess a strong mix of sector insight and relationships, a track record of successfully developing entrepreneurial businesses, financial acumen and operational expertise.

Investments into Recycling Facilities benefit from the security of freehold land or long leasehold interests, ownership of building and plant assets and with the benefit of Local Authority waste supply and energy sale contracts that provide robust, blue-chip underpinning of contracted revenue streams.

Structure

The Premier Fund itself is an Isle of Man qualifying type experienced investor fund for qualifying investors and each of the New Earth Sub-Funds have „reporting fund status.

At any one time, New Earth Solutions has three phases of facility in motion:

· Operational facilities – Five waste treatment plants are already operational located in Kent, Dorset, Leicestershire, Gloucestershire and Bristol with a processing capacity of c.425,000 tonnes per annum of waste each with cornerstone contracts with Local Authorities.

· Development facilities – A new waste treatment plant is due to be opened in Autumn 2012 in Scottish Borders with a planned capacity of 60,000 tonnes per annum of processed waste underpinned by a 45,000 tonnes pa contract with Scottish Borders Council. A 1 megawatt energy from waste plant using advanced thermal conversion is undertaking trials in Dorset with a planned further roll out at the Avonmouth site in Bristol and at the Scottish Borders site.

· Pipeline facilities – Secured contracts with Local Authorities and operational plants provides the platform for the New Earth Group to participate in further tendering activity with local authorities and provides a platform to develop further waste treatment facilities. Renewable energy facilities are planned to be developed so that they are co-located at the existing operational plants with sites secured at the Dorset Green Technology Park near Winfrith in Dorset and alongside the existing Blaise plant in Kent. These significant commercial plants offer a unique opportunity for investors to secure an attractive and different type of investment, underpinned by Local Authority waste contracts and, where feasible, renewable energy revenues and supported by EU legislative drivers.

Reasons to Invest

The New Earth Sub-Funds offers the opportunity to participate in a proven, green operating process with the potential to achieve double-digit returns. It has an asset-backed structure which delivers investor returns from investing directly into a vehicle that holds two principal assets; first, the hard assets of land, buildings, plant and machinery and second, the Local Authority waste supply contracts. In summary, we believe there are seven compelling reasons why this investment is attractive to certain types of investor:

1. A unique opportunity We are unaware of any comparable fund enabling direct investment into a proven waste management biological treatment solution which also participates in renewable energy production.

2. Meets environmental, political and economic drivers in landfill waste diversion and renewable energy This clean tech opportunity supports current EU Directives to deliver waste diversion from landfill (where UK costs are set to double in price over the next 5 years) and to pursue renewable energy alternatives (where a ten-fold increase is targeted in the UK by 2020). A carrot and stick approach has been adopted whereby government-sponsored financial incentives are available for renewable energy production and Local Authorities who fail to hit landfill diversion targets are penalised.

3. Reliable income source from Local Authorities New Earth Group delivers a compelling and competitive alternative solution to landfill and has already secured a strong future by winning various medium and long-term Local Authority contracts, translating into highly predictable revenue streams. This provides a strong foundation upon which to build further waste management and renewable energy contract successes.

4. Attractive returns and low volatility ratio Returns are targeted at 12-15% p.a. which are currently being achieved and are forecast to be maintained over the medium to long term. This is being achieved with low volatility and supports the appeal of this alternative investment.

5. Great prospects from a strong and experienced management team Bill Riddle spearheads a New Earth Group management team who are committed to building the premier business in UK waste management and renewable energy solutions. Their rapid expansion plans are progressing well with the next plant in Scottish Borders due to start construction in September 2011, alongside the operational plants in Dorset, Kent, Gloucestershire, Bristol and Leicestershire. This is complemented with a national pipeline of prospects.

6. Senior debt is in place for the operational plants at Dorset, Kent, Gloucestershire and Leicestershire Nord LB, a public sector owned German bank with solid experience of lending to the waste and energy recovery sectors, recognises the quality of the waste management plant assets of New Earth Solutions Facilities Management Limited in providing a loan package of £30m to date.

7. Winning & clean biological treatment technology The underlying technology and process is secured with an EU Patent and Technical Audit. New Earth Group continues to devote research and resource to further enhance the process. Their track record is proven so peace of mind in respect of the technology is assured. Add to this the socially responsible nature of the proposition and this becomes a totally rounded investment opportunity.


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