29 April 2010

Greenergy International Ltd is pleased to announce the formation of Scarab Distributed Energy Ltd to develop novel ways of producing fuel and power from waste, including industrial food waste.

Scarab brings together a consortium of interests to build and manage multiple distributed waste and biomass processing facilities at locations around the UK. Greenergy intends to purchase all of Scarab’s fuel.

Scarab will make use of proven, commercially viable, technologies owned by consortium members. It plans to put in place the technology and facilities to be able to process any form of industrial food waste, whether sugar, starch, fat, protein or cellulose. In due course this could be expanded to include domestic food waste.

Today’s biofuels are produced either from food crops or from waste oils and animal fats, with the latter in particularly limited supply. By targeting a wide variety of currently underutilised waste streams, Scarab will extend the range of raw material feedstocks available for biofuel production and enhance Greenergy’s access to the most sustainable sources of biofuel.

Uniquely Scarab intends to adopt a decentralised approach, with processing facilities located close to the waste source and capable of being economically scaled down to match local volumes. This will cut the transport costs associated with high-volume, low-value and perishable products, as well as saving transport-related greenhouse gas emissions.

The consortium, led by Chief Executive Officer, Neil Bennett, brings together six partners: Greenergy which will purchase all fuel produced by Scarab; St1 Biofuels, a Finnish bioethanol from waste producer; EEA, an environmental investment fund manager and carbon trading business; Aquafuel offering patented technology for renewable CHP; Brocklesby with expertise in food waste handling and logistics; and Axion Consulting with specialist project management expertise in the resource recovery sector.

Scarab is planning to commence biofuel production in 2011.

Background information

Neil Bennett has 14 years experience in UK waste management & recycling sector, the majority in leadership roles with Cory Environmental, ending as Chief Operating Officer. He was part of the MBO team in the public to private sale of Cory in 2005 and the secondary sale to Infrastructure Funds in 2007 (£585m).