Inetec, investment in waste-to-renewable-energy technology

Oxford Capital Partners invests in Inetec Limited

Oxford, UK, 13th April 2006
Oxford Capital Partners, the Oxford based venture capital firm focused on science and technology companies, has announced its investment in Inetec Limited as part of its focus on the sustainability engineering sector. Inetec Limited is a developer of waste-to-renewable-energy projects in the industrial food manufacturing sector. The £2.5m investment round was led by Oxford Capital Partners and supported by the existing investors, Finance Wales and Foursome Investments.

Inetec uses its proprietary technology to convert industrial food waste into a stable biofuel. This biofuel can then be converted into gas and combusted in a combined heat and power plant (CHP) to produce heat for industry and renewable electricity for the grid. Each CHP will generate four revenue streams including a gate fee for waste collection, the sale of heat energy to industry, the sale of renewable electricity to the grid and the sale of marketable Renewable Obligation Certificates (ROCs).

Inetec benefits from the further advantage that its patented technology is the only commercially available solution able to treat all types of food waste without the need for pre-treatment, packaging removal or adjustment of the machine.

The combination of rising landfill costs and increasing legislative pressure to develop sustainable waste disposal methods and renewable energy has created a significant market opportunity for Inetec, whose solutions address both of these challenges.

It is estimated that the market for the treatment of food waste from the UK food manufacturing industry amounts to £240m and Inetec have already made significant inroads into the sector attracting a number of high profile food manufacturers as customers. Among its customers are companies that produce anything from 10 to 200 tonnes of food waste each day, almost all of which currently goes into landfill sites. For such companies Inetec’s technology presents a cost effective and environmentally responsible solution to what is becoming an ever increasing problem.

David Mott, Director of Oxford Capital Partners, states “Our investment in Inetec is part of our focus on the sustainability engineering sector. The technology has clear advantages in the processing of food waste over existing technologies such as composting or rendering which have been popular with investors in recent years. We look forward to helping Inetec get its first waste-to-renewable-energy project operational”

According to Phil Nicholas, Chief Executive Officer of Inetec, “Inetec required a significant round of new investment following recent contract wins, and to support an ambitious development programme. We were delighted to secure a significant part of that investment from Oxford Capital Partners. Oxford Capital Partners demonstrated an excellent understanding of our business and our particular structure of planned development. This ‘feeling’ for our business, combined with broad ranging technical and commercial experience, is confidently expected to add great value to our management over the next few years.”

Phil Nicholas, CEO, added “I would also like to acknowledge the substantial commitment of Finance Wales who have followed early stage investment with a substantial follow-on commitment.” (Finance Wales was created by the Welsh Assembly Government to provide commercial funding to Welsh businesses).

About Oxford Capital Partners

Oxford Capital Partners is a science and technology venture capital firm with extensive experience of commercialising science and technology and supporting businesses with high growth potential. Oxford Capital Partners seeks to identify the best opportunities for investment. We back exceptional entrepreneurs and invests across all stages of development from start-up to IPO, in the UK and internationally. Oxford Capital Partners manages the Oxford Gateway Funds and is currently investing its 4th fund in this series and manages of portfolio of over 25 companies in the technology and life sciences sectors.

Oxford Capital Partners was named Venture Capital House of the Year at the 2005 Unquote awards.

For further information, please contact:

Joanne Telford
01865 860 760
jtelford@oxcp.com

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