In line with the UK Committee on Climate Change’s objective to see 23,000 hectares of Miscanthus bio-crops planted each year, Bluestone have launched a new finance product that enables farmers to make the change to their crop make-up.
Miscanthus is a unique and revolutionary biomass crop. Miscanthus recycles carbon annually through overground biomass growth, at the same time storing carbon in the soil. Scientists identified Miscanthus as one of the most efficient raw materials on earth to produce biofuels. This means the potential uses are wide, from making plastics to producing building materials to fuel. It produces a crop every spring without the need for replanting. Miscanthus is so efficient due to it being a perennial crop with no fertiliser requirement. It can yield up to 20t/ha of dry biomass and can grow almost anywhere in the world, making it the most efficient, sustainable and scalable biomass feedstock in the world.
The Miscanthus crop has a two-year maturity period meaning farmers would, initially, be out-of-pocket. To combat this Bluestone have managed to secure a finance product with deferred payments for the first 12 months, and the repayments spread over a further 6 years in line with the farmers return. This enables the farmers to make the initial investment and then gain access to the lucrative returns down the line; spreading the initial outlay over a seven year period.
With the farmer’s crop being backed by a fixed term contract with the power station they’ll be supplying, there is comfort form the funder that they’ll be able to make their returns even with the 12 month payment deferral.
“Bluestone are committed to support environmental developments and have championed green energy for over 5 years. Our finance solutions continue to support businesses in making the change to become greener quicker, and this latest development is our next step in supporting the UK’s commitment to meeting it’s environmental targets.”
Vineesh Madaan, Managing Director of Bluestone
Bluestone Leasing Blog 