A UK anaerobic digestion plant operator has been given a huge boost, thanks to a £32 million loan.

The Royal Bank of Scotland (RBS) is providing what is claimed to be the first loan of its kind in the AD industry to Tamar Energy.

The seven-year non-recourse project finance facility means the bank is only entitled to repayments from the profits of the project the loan is funding and not from other assets of the borrower.

The fund will help refinance Tamar Energy’s existing five AD plants – that have a combined capacity of 11GW – and build the next wave of waste-to-energy facilities.

Energy Minister Amber Rudd said: “With AD developers now being recognised as worthwhile investments in their own right without the need for additional assets to raise financing, this is an exciting moment for the industry.

“Already AD deployment has soared by over 200% since 2010 and I look forward to the continued growth of the AD sector as a source of clean energy as well as investment and jobs.”

Tamar Energy recently signed a power purchase agreement (PPA) with EDF Energy for its first five AD plants. The company was granted permission to build a sixth plant at Bromley in Greater London last year.