Biomass supplier fuels growth plans with £200,000 funding boost

A fast-growing Yorkshire company which has become one of the region’s leading suppliers of biomass wood pellets has secured £200,000 to support its growth plans.

VerdEnergy supplies customers throughout the North of England from its headquarters in York, depots in Richmond and Goole and through its fleet of specialist delivery vehicles.

VerdEnergy was established in 2015 by the team behind Duncan Renewables, an installer of renewable energy systems.

Co-founder Mark Duncan said they had realised that there was a gap in the market for a good quality wood pellet supplier and decided to create a full-service solution for customers, which includes installation, service maintenance and fuel supply.

This approach has proven to be a success, with volumes more than trebling in the past two years.

The funding from NPIF – Mercia Debt Finance, which is part of the Northern Powerhouse Investment Fund, will provide additional working capital to fund extra pellet shipments and support increased demand.

Ian Atkinson, investment manager at Mercia Fund Managers which manages NPIF – Mercia Debt Finance, said: “Biomass offers an environmentally-friendly, lower-cost alternative to conventional energy sources and take-up is growing amongst hotels, country estates, commercial occupiers and domestic users. VerdEnergy has quickly established itself as the region’s premier supplier.”

Martin Bell of Red Sky advised the company on fundraising and assisted with the application. He said: “We have been working with Mark for some time to advise on VerdEnergy’s ongoing funding needs. The launch of the Northern Powerhouse Investment Fund came just as the business was seeking a new funding round to step up its activity, and it has proved a perfect match for the company’s requirements.”