Investor Centre Advisor Centre Data Room

Case Study: Vertal

Background

The Company was established to develop a food waste processing facility in Mitcham, South London using a thermal treatment technology (ATAD - Auto Thermophilic Aerobic Digestion) to speed up the digestion of food waste.

During the ATAD process water is added to the shredded and pulverised food waste to create a slurry. Within 72 hours, the thermophilic bacteria digest the waste food creating a pasteurised liquid. This pasteurised liquid is then filtered and separated to create a potentially valuable fertiliser.

The plant was successfully constructed on time and budget during 2009. Operations commenced in early 2010 with waste volumes from local authorities and waste collectors such as Surrey Waste and the South London Waste Partnership.

Investment summary

Foresight Funds and founder shareholders have invested c.£10 million into Vertal Limited to develop the business in the food waste processing arena within Greater London.

Opportunities

As part of the evolution of the business model for Vertal, a number of other possibilities have presented themselves:

  • Construction of an on-site Anaerobic Digestion (AD) plant with a capacity of up to 25,000 tonnes per annum adjacent to the existing food waste processing facility. Electricity output could be used on-site or sold to the national grid. Electrical output would qualify for the government backed Renewable Obligation Certificates (“ROC”), the sale of ROCs represents an additional revenue stream.
  • Provision of an intermediate liquid product to on-farm AD facilities
  • Roll out of a combination of ATAD/AD plants around London and major UK conurbations.

On-farm AD is a key focus for the government as highlighted recently in the increase in feed in tariffs for small scale AD facilities, with renewable electricity generation from such facilities representing a large part of the UK Government’s carbon reduction target.