A family-owned business in York is pioneering the next generation of combined heat and power technology following a seven-figure investment in a suite of new machinery.
Allium Energy, based near Easingwold, began trading as F D Todd & Sons at the end of the First World War – and started banking with Lloyds Bank shortly after.
Originally starting out in quarrying and road building, it evolved into skip hire and waste management services under the leadership of Richard Todd, the fourth generation of the family to run the company. Then, in 2017, he sold the waste management business to form Allium, after spotting the potential to diversify into renewable power generation and land restoration.
Recognising that a number of the business’s former waste sites were producing gas, Richard set out to learn how to generate renewable energy by capturing the methane generated from decomposing organic matter. These sites are now renewable centres – all waste is processed to recover its power, with compost produced as a biproduct.
Both the electricity and heat from the new plant will be used locally. A nearby poultry farm will receive the first draw of power, with the balance being fed into the national grid.
The £6million project – supported by a £3million loan from Lloyds Bank – to install a dedicated energy recovery plant is now underway, with the Bank funding supporting investment in a suite of new machinery.
On completion, the plant will reduce local CO2 emissions by almost 6,500 tonnes every year, and will generate enough power to supply the equivalent of 813 homes. In addition, it will create four new skilled job opportunities, which will see the Allium team grow from 14 to 18 over the next year.
Richard Todd, Managing Director of Allium Energy, said: “In the current climate, factors like demand for new housing and the drive to adopt electric vehicles are placing huge pressure on our grid. Couple this with the fact that energy prices are only set to rise, and it’s critical that we do as much as we can to capitalise on the materials we have at our disposal to create renewable, clean, sustainable sources of power.
“This was the inspiration for the evolution of F D Todd & Sons into Allium Energy – there was huge potential sat, quite literally, waiting to be transformed into energy that can contribute to meeting local demand.
“The set-up we are creating here is fully scalable, and we hope it can be used as a blueprint for developers and other big users of energy looking to find more sustainable, localised power and heat solutions.”
Carolyn English, relationship director at Lloyds Bank, said: “This kind of innovation is exactly what the UK needs to help us meet our net zero goals, and take big steps towards becoming a truly circular economy, thinking creatively about how to use waste products.
“We’re excited to see how Allium’s proposition develops over the coming months as they pioneer the use of locally generated energy.”
