A Fylde coast recycling business which takes household waste destined for landfill and turns it into fuel has secured funding for expansion.
Lancashire Waste Recycling has been given a £575,000 debt funding package from Lancashire Rosebud Finance and NPIF – FW Capital Debt Finance, which is part of the Northern Powerhouse Fund.
The money will allow the Burn Hall company to invest in new plant, expand its market and create 15 new jobs over the next three years.
It 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 Lancashire Waste Recycling 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.
The firm was founded in 2010 by entrepreneurs Paul Mellor and Jim Entwisle on a site next to Lancashire County Council’s waste processing plant. It now has a sister company, Envirofuel, which was established in 2016 and operates from a site in Hapton, Burnley.
Between them, the two process more than 150,000 tonnes of waste per year and employ 30 people. Rosebud Finance has provided finance for both firms in the past.
Rosebud Finance is managed by Mercia Fund Managers on behalf of Lancashire County Developments Ltd, 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 .”
County Coun Michael Green, cabinet member for economic development, environment and planning, said:
"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."