A company looking to bring innovative waste solutions to the Humber Bank has launched a £100 million fund raise to build its first plant.
Terrae Novo is a Leeds start-up working on converting non-recyclable plastic and bio waste into new plastics and low-carbon fuels. It has gained planning permission for a site at Saltend Chemicals Park.
With the potential to create around 25 jobs, the team has already raised £7 million from fellow Leeds-based investment house Traditum Private Equity to demonstrate its process and secure consents.
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Ultimately it aims to establish a network of plants around the UK and Europe, diverting from landfill, export or other more carbon intensive solutions.
Established in 2019, Terrae Novo is led by Jason Woods, who previously held senior roles in energy and chemical companies including Drax Power, Vattenfall and Ineos - a potential neighbour on the PX Group site. His team have spent two years working with Traditum to further develop the process and draw up an investment proposal to put it into production.
“We believe our process has the potential to disrupt the traditional waste to landfill and energy markets, and achieve significant reductions in carbon emissions,” he said. “It also addresses the need to find new sources of recycled fuel and limit the use of food crops, a policy already adopted by the EU and some other countries. Thanks to Traditum’s support, we are now ready to start production. Once the first site is up and running, our aim is to roll it out on a global scale.”
Terrae Novo’s process brings together a range of existing technologies in an innovative way, and offers a number of key benefits. Waste is made into synthetic gas or ‘syngas’ and can then be broken down into its original hydrocarbon molecules. Therefore it can be used to create aviation or road transport fuel with a much lower carbon footprint than conventional fossil fuels.
The team are, however, looking at even greater environmental benefits by using it to create the feedstock for new plastic products. Lifecycle analysis shows that by locking in carbon and replacing crude oil, this process would be ‘carbon negative’.
The plant on the former BP facility, within the now-approved Humber Freeport zone, would process around 60,000 tonnes of waste a year. Promising returns for investors are being outlined by Terrae Novo, with risk underwritten by insurance. EY is leading the fundraising.
Trevor Sherlock, director of Traditum, said: “Terrae Novo’s groundbreaking process tackles a number of key issues – how to deal with plastic waste, reduce carbon use and support our national energy requirements. At the same time it is commercially viable and offers excellent potential returns on investment. This shows the positive role that business can play in addressing the big challenges facing society, by encouraging investors, scientists and innovators to work together to find solutions.”
Paul Johnson of Mills and Reeve provided legal advice to Traditum, formed by two high-net-worth families and chaired by former NatWest North Regional Board chair Richard Topliss, while Richard Wilson at RSM provided tax advice to the company.
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