Downing makes first move into clean energy sector

Downing Corporate Finance is making its first foray into the clean energy sector with an investment in a biogas producer.

The VCT manager has invested £3.8m in Future Biogas to help the firm develop a new biogas plant in Norfolk. The investment comprises £3m in loan notes and £800,000 in equity provided by five of its VCTs. Future Biogas plans to grow its own maize on rented farmland which will subsequently be fed into the plant to produce electricity. Investment manager Michael Hughes says the introduction of feed-in tariffs, combined with the development of proven technology, is attracting Downing to the sector. "Feed-in tariffs provide a guaranteed price for the electricity for 20 years, which mean...