Biogen Says Rising Cost of Burying U.K. Waste to Boost Revenue
Biogen Ltd., a U.K. developer of facilities that generate electricity from food waste, said revenue is set to double by the end of 2015 as the cost of burying waste rises.
The company is building four plants that will use household and commercial food waste to generate power, Richard Barker, the chief executive officer of Bedfordshire-based Biogen, said by e-mail. These should start working by the end of 2014, helping to more than double Biogen’s revenue, which was 8 million pounds ($13 million) last year, by the end of 2015, he said.
Supermarkets and businesses are being pushed to send their food waste to anaerobic digestion facilities such as Biogen’s by a landfill tax that makes it increasingly expensive to bury waste. It was introduced in April 2012 at 64 pounds a metric ton and rose to 72 pounds in the same month this year.
“Together with our existing plants we will be able to process over 220,000 tons per year and generate in excess of 90,000 megawatt-hours per annum,” Barker said.
Biogen plans to have nine working facilities feeding electricity into the U.K. grid by 2017. Its clients include retailers, manufacturers, caterers and supermarkets. Kier Group Plc (KIE) bought half of Biogen for 24.4 million pounds in August last year. Biogen will use this money as well as investment from Iona Capital Ltd. to build the plants.
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