York biomass supplier fuels growth with £200k Northern Powerhouse boost

Biomass wood pellet supplier VerdEnergy has been awarded a £200k boost to support its growth plans.

The York-headquartered company secured the six-figure sum from NPIF – Mercia Debt Finance, part of the Northern Powerhouse Investment Fund (NPIF).

Founded in 2015 by entrepreneur Mark Duncan and the team behind renewable energy system installer Duncan Renewables, VerdEnergy today supplies customers throughout the North of England.

In addition to its York HQ, the firm operates depots in Richmond and Goole.

NPIF – Mercia Debt Finance is run by investment firm Mercia Fund Managers.

Ian Atkinson, investment manager at Mercia, said of the deal: “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.”

He added: “The funding will provide additional working capital to fund extra pellet shipments and support the increased demand.”

VerdEnergy was advised on the fundraising and received assistance with the application from Martin Bell of business development firm RedSky

Martin commented: “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.”

The NPIF operates from the British Business Bank’s head office in Sheffield.

British Business Bank director Grant Peggie said: “The Northern Powerhouse Investment Fund has created additional sources of funding for those companies looking to obtain growth finance.

“We are pleased that NPIF is supporting SMEs in the North and providing the funding required to fuel economic growth across the region.”