Recycling minister Lord Henley recently confirmed details of a £10m Anaerobic Digestion Loan Fund (ADLF) for new AD plants.

However, the announcement has already met opposition with the Anaerobic Digestion and Biogas Association (ADBA) accusing ministers of failing to direct councils in the direction of AD.

The new fund will be administered by WRAP. The fund will lend amounts ranging from £50,000 to £1m to support the development of new AD capacity in England in conjunction with investment from the private sector. It aims to support 300,000 tonnes of annual capacity to divert food waste from landfill by 2015.

Responding to the announcement, ADBA chief executive Charlotte Morton said: “This fund is welcome news for the industry, and will support projects which will make a real difference in starting to build up the UK’s anaerobic digestion capacity.

“However, it represents only a small part of the investment which is needed to take AD to the point where it is really delivering for the UK’s strategic objectives – and raising finance remains the biggest barrier for projects.”