What does the company do?
Alternative Energy Developments owns a portfolio of six operational biomass heat systems with a total capacity of 1.2 MWth which supply renewable heat to a range of businesses including a group of charity-owned outdoor adventure centres in Scotland. The boilers are owned and operated by Alternative Energy Developments on behalf of the businesses where they are situated.
Each biomass system consists of one or more biomass boilers which generate heat by burning biomass fuel (a renewable and sustainable source of energy that usually comes in the form of wood chips or pellets) and this heat is sold to businesses under a contract. The boilers are also eligible to receive the Renewable Heat Incentive (RHI) over 20 years for generating renewable heat from renewable sources, with the earliest biomass system expiring in 2034.
Why did the company raise money?
The money raised in 2018 on Abundance was used to repay an existing loan which helped pay for the installation of the biomass boilers.
How does the company expect to repay the investment?
Alternative Energy Developments expects to repay investors from the operational revenues it earns over the life of the investment.
How is the company making an impact?
The renewable heat generated is sold to the businesses where the boilers are situated, which reduces the environmental cost of their heating requirements while saving them money on their energy bills. In the case of the outdoor adventure centres, the biomass boilers replaced old-oil based heating systems.
The biomass boilers are very similar in operation to those burning fossil fuels but with the advantage of using biomass that is considered a renewable and carbon neutral fuel source. As per the requirements of the RHI scheme only biomass that meets certain sourcing and sustainability criteria can be used.
Key terms
The interest and capital is paid in equal instalments every 6 months over 17 years (the first return period was 5 months and the last will be 7 months long).
The company can only make an early repayment of the investment in certain circumstances, such as a change of control of the company (for example, if some or all of the company was sold to a new owner) or a regulatory/tax requirement.
See the Debenture Deed for details of all circumstances in which the option for early repayment may be exercised.Documents
Payment schedule
This table gives a breakdown of what is due to be paid back on this investment, based on an example investment of £1,000.
| Payment date | Capital repayment | Interest | Total |
|---|---|---|---|
| 7 September 2018 | £24.63 | £15.11 | £39.74 |
| 11 March 2019 | £29.56 | £18.13 | £47.69 |
| 6 September 2019 | £29.56 | £18.13 | £47.69 |
| 10 March 2020 | £29.56 | £18.13 | £47.69 |
| 8 September 2020 | £29.56 | £18.13 | £47.69 |
| 11 March 2021 | £29.56 | £18.13 | £47.69 |
| 8 September 2021 | £29.56 | £18.13 | £47.69 |
| 11 March 2022 | £29.56 | £18.13 | £47.69 |
| 8 September 2022 | £29.56 | £18.13 | £47.69 |
| 10 March 2023 | £29.56 | £18.13 | £47.69 |
| 8 September 2023 | £29.56 | £18.13 | £47.69 |
| 8 March 2024 | £29.56 | £18.13 | £47.69 |
| 6 September 2024 | £29.56 | £18.13 | £47.69 |
| 11 March 2025 | £29.56 | £18.13 | £47.69 |
| 8 September 2025 | £29.56 | £18.13 | £47.69 |
| 11 March 2026 | £29.56 | £18.13 | £47.69 |
| 8 September 2026 | £29.56 | £18.13 | £47.69 |
| 11 March 2027 | £29.56 | £18.13 | £47.69 |
| 8 September 2027 | £29.56 | £18.13 | £47.69 |
| 10 March 2028 | £29.56 | £18.13 | £47.69 |
| 8 September 2028 | £29.56 | £18.13 | £47.69 |
| 9 March 2029 | £29.56 | £18.13 | £47.69 |
| 7 September 2029 | £29.56 | £18.13 | £47.69 |
| 11 March 2030 | £29.56 | £18.13 | £47.69 |
| 6 September 2030 | £29.56 | £18.13 | £47.69 |
| 11 March 2031 | £29.56 | £18.13 | £47.69 |
| 8 September 2031 | £29.56 | £18.13 | £47.69 |
| 10 March 2032 | £29.56 | £18.13 | £47.69 |
| 8 September 2032 | £29.56 | £18.13 | £47.69 |
| 11 March 2033 | £29.56 | £18.13 | £47.69 |
| 8 September 2033 | £29.56 | £18.13 | £47.69 |
| 10 March 2034 | £29.56 | £18.13 | £47.69 |
| 8 September 2034 | £29.56 | £18.13 | £47.69 |
| 9 March 2035 | £29.45 | £18.13 | £47.58 |
| Total | £1,000.00 | £613.40 | £1,613.40 |