NatWest and RBS extend support for renewable energy projects
First banks to take future earnings from AD and hydro projects into consideration when assessing funding.
Up to 30% of future earnings from Anaerobic Digestion and Hydro technologies will now be taken into account
NatWest and the Royal Bank of Scotland have extended their support for renewable energy projects – becoming the first banks to take future earnings from AD and hydro projects into consideration when assessing funding.
The banks, which have supported renewable energy projects including solar and wind for a number of years, will now take into account up to 30% of future earnings from Anaerobic Digestion and Hydro technologies.
The announcement comes ahead of the Anaerobic Digestion and Bioresources Association conference (ADBA) in London today (Tuesday).
Ian Burrow, Head of Agriculture and Renewable Energy at NatWest and RBS, said: “AD and Hydro technologies represent a huge opportunity for farmers considering renewable energy in the UK.
“With energy costs continuing to rise and a growing pressure for agricultural businesses to become more efficient, they are continuing to look at whether renewable energy technologies would work for them.
“I’m delighted that we are the first banks to be able to take this step for farmers considering AD and Hydro projects – and hope we can help support businesses in making these projects a reality.”
The bank hopes that the new policy will allow businesses to achieve funding through the additional projected income of the energy provided by AD or Hydro projects being taken into account.
Chief Executive of the Anaerobic Digestion & Bioresources Association, Charlotte Morton, said: “The banking community should be the prime lender for rural businesses, however, before RBS’s announcement today, AD developers were required to service the interest on £1-3 million of debt from existing incomes. This has been a real barrier to the development of on-farm AD.
“We’re delighted that RBS is leading the way in taking positive steps to address the challenge of funding on farm AD projects in particular. RBS’s pioneering approach will ensure that more farmers are able to benefit from the generation of renewable energy and biofertiliser through AD. This will help agricultural businesses diversify revenue streams, reduce input costs, improve soil quality and cut carbon.”
Simon Hamlyn, CEO British Hydropower Association, added: “We are delighted that the Royal Bank of Scotland have now formulated and launched their own hydropower funding policy, becoming one of the first high street banks to do.
“There are many exciting hydropower projects in the UK and sometimes sourcing funding can be problematic for project developers or owners. To have the full support of a blue chip business such as the Royal Bank of Scotland is good news for the sector. The BHA look forward to welcoming the Royal Bank of Scotland into membership in the New Year.”
