Anaerobic digester finance
Funding for anaerobic digestion projects and plant upgrades, where tanks, civils and process equipment are structured as a project rather than a purchase.
Whole-of-market — 60+ lenders searched, including
Can you finance an anaerobic digester?
Sometimes, and the honest answer is that an anaerobic digester is a project, not an equipment purchase. A new AD plant is largely civil engineering — concrete tanks, lagoons, pipework and groundworks — which conventional asset funders cannot recover and generally will not fund. What is fundable is the process equipment that sits within it: feeders, separators, mixers, pumps, gas upgrading skids and CHP engines. Established plants buying replacement equipment or expanding capacity are far easier to place than greenfield schemes, which usually need project finance instead.
Used kit: Yes. Second-hand separators, feeders and pumps from decommissioned plants are traded and can be funded where condition and hours are evidenced.
Get a quoteor call 0333 772 4864
What would an anaerobic digester cost per month?
Asset finance is quoted on a flat rate, so that is what the buttons show, with the equivalent APR beside it. Your exact rate depends on the asset, the term, the deposit and the lender.
Prime is an established, profitable business with clean credit. Specialist covers newer businesses and credit that needs explaining — the asset itself carries part of the risk, which is why finance is often available where an unsecured loan is not.
Representative example: on Hire Purchase, borrowing £25,000 over 48 months at a 5.15% flat rate (equivalent to 9.9% APR representative), you would repay around £628 a month; total amount repayable approximately £30,150, of which £5,150 is the cost of finance. This calculator is for illustration only — it is not a quote or an offer of finance, and the rate and repayments you are offered will depend on the asset, term, deposit and your circumstances. CW Asset Finance is a credit broker, not a lender, and may receive a commission from the lender that funds your agreement. All finance is subject to status, affordability and lender approval.
Rates shown are indicative flat rates with the equivalent APR alongside — the two are not the same number. Indicative only and does not constitute a quote or an offer of finance. Subject to status and lender approval.
How lenders treat it
This is the least equipment-like asset in the renewables family and it is treated accordingly. A digester tank cannot be repossessed; it is a structure poured into your ground. That pushes conventional asset funders towards the moving parts — feed systems, separators, pasteurisers, gas upgrading and engines — and towards businesses that already have a plant running. For a plant with an established operating history, income matters a great deal: gas or electricity export revenue, gate fees and digestate value are real, evidenced cash flows and funders who know the sector will underwrite against them. Greenfield schemes with no operating record are a different market and usually need a structured project facility rather than an equipment agreement.
Makes and models we fund
Examples of the machines we are asked to fund. This is not an exhaustive list — if what you are buying is not here, it does not mean we cannot fund it. Your supplier quote is what the agreement is written against.
| Machine | What it is |
|---|---|
| Vogelsang PreMix feed system | Solid feed hopper and mixing unit |
| Vogelsang RotaCut macerator | Feedstock maceration and stone trap |
| Bauer S855 screw press separator | Digestate screw press separator |
| Landia GasMix digester mixing system | External digester mixing package |
| Landia chopper pump | Feedstock and digestate pumping |
| Greenlane biogas upgrading skid | Biomethane upgrading plant |
| Bright Biomethane upgrading system | Membrane biogas upgrading skid |
| Pentair Haffmans biogas upgrading | Biogas cleaning and upgrading train |
| Jenbacher J420 gas engine | Biogas fuelled generating set |
| 2G agenitor 406 gas engine | Biogas combined heat and power unit |
Get a quoteor call 0333 772 4864
Who buys one
Dairy and beef units digesting slurry, arable farms running crop-fed plants, food manufacturers dealing with process waste, and waste management operators. The trigger is generally either a slurry storage requirement arriving with new regulations, a gate fee opportunity from local food waste, or an existing plant where the feeder or separator has reached the end of its life and is holding output back.
Get a quoteor call 0333 772 4864
How it is treated for tax
Bought on hire purchase, business plant and machinery normally qualifies for capital allowances on the full cost even though you pay for it monthly, which is a large part of why hire purchase is the common structure. On a finance lease you generally set the rentals against profit instead. The rules change between budgets and your position depends on how you trade, so treat this as the direction of travel and get your accountant to confirm the detail before you commit.
Anaerobic digester finance questions
Can I finance a brand new AD plant end to end?
Very rarely through equipment finance. The bulk of a new build is concrete and groundworks that no asset funder can recover, so greenfield plants normally need project or development finance. Where we can help is the equipment within the scheme, and upgrades or replacements on plants already operating.
Is it easier once the plant is running?
Considerably. An operating plant has a track record, evidenced revenue and a demonstrable need for the equipment being bought. Replacing a separator or adding a second feeder on a proven site is an ordinary asset finance conversation, whereas funding a hole in the ground is not.
Do funders look at gas or electricity income?
For AD, yes, more than for almost any other asset here. Export revenue, gate fees and digestate sales are the reason the plant exists, and specialist funders will assess those cash flows alongside the accounts. Contracted offtake carries far more weight than projections. Bring the offtake agreement to the first conversation rather than a business plan.
Can the CHP engine be financed separately from the plant?
Yes, and it often is. A gas engine is an identifiable, serial-numbered machine with a real second-hand market, which makes it one of the most fundable items on an AD site. Engine replacements and overhauls are among the most common applications we see. Confirm whether the old engine is being traded in, as that changes the amount.
What about the digestate storage lagoon?
Lagoons and stores are construction, not equipment, and sit outside what an asset funder will normally lend against. Covers, mixers and pumps associated with the store are equipment and can be looked at. It is worth splitting these costs on the quote before an application goes in.
Get a quoteor call 0333 772 4864
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Not an offer of finance. All finance is subject to status, affordability and lender approval.
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Tell us what you’re looking to fund and Conor will come back to you personally — usually the same day.
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