A Consett-based renewable energy company is set to expand following investment from Durham County Council Fund.
The Finance Durham fund has completed a £650,000 investment in SDS Inc Limited, which generates heat, gas and electricity from wood chippings, producing solid wood fuel briquettes, a cheaper alternative to the traditional seasoned hardwood used for wood burning fires and stoves.
The investment will allow SDS to purchase additional machinery to improve efficiency and sell wood briquettes on a commercial scale for use in log burners. This is the third deal from the £20m Fund set up by Business Durham, on behalf of Durham County Council.
The Fund is managed by Maven Capital Partners to support the growth of high potential businesses located in, or looking to relocate to the County.
Founded in 2017 by energy engineers Shane McDonald and Morgan Corkill, SDS operates a biomass renewable energy plant that takes wood chippings waste from timber yards and applies a process to produce electricity. The site also has four engines and turbines that export electricity to the grid.
Biomass energy production is a proven technology and currently represents 85% of the total UK renewable energy supply. Climate change and sustainability are central themes in Durham County Council’s ambition to create a thriving, resilient and engaged low carbon community by 2020.
Brian Archer, managing director of Business Durham, said: “County Durham is home to some of the UK’s fastest growing companies and it’s fantastic that the Finance Durham Fund is able to support SDS as it takes advantage of the burgeoning solid fuel market.”
Shane McDonald said “The opportunity to work with Finance Durham and Maven via the CDEMN team has meant the factory can now invest in specialised manufacturing equipment, employ key staff and therefore secure long term contracts ensuring sustainable growth over the coming years. We have such a strong demand for our wood briquette and pellet products that we are turning away orders so this will revolutionise the coming few years, it really is a fantastic approach to supporting emerging companies in the Durham area and we are very proud to have been at the forefront of this forward-thinking approach.”
Cllr Carl Marshall, Durham County Council’s Cabinet member for economic regeneration, said: “It’s great that our Finance Durham Fund is supporting another County business in its efforts to grow and we’re especially pleased to be helping a renewable energy firm which shares our desire to reduce carbon emissions. We wish SDS the very best of luck and look forward to assisting other companies which are looking to expand or to move to our wonderful County.”
Michael Vassallo, investment director at Maven, said: “We are delighted to support SDS’s growth plans through the Finance Durham Fund investment. Shane and Morgan are experts in their field with a strong track record of installing, maintaining and operating these plants. This is an exciting business consisting of driven and passionate individuals, with a product tailored to an increasing market demand.”