Eco-friendly investment fund Sustainable Technology Investors Ltd has launched a new EIS fund as it prepares to open its first plant.
The fund is looking to raise £10m and will invest in proven sustainable energy technologies.
STIL chairman Gordon Power said: “The UK government is focused on building a clean, secure energy infrastructure for the future, and in doing so reducing its reliance on foreign controlled volatile energy markets, whilst also seeking to meet legally enshrined targets to reduce the UK’s carbon emissions.
“It remains an opportune time for the EIS industry and the sustainable energy space with both having been, and continuing to be, supported by enabling government policies to encourage additional private sector investment.”
Mr Power said STIL’s first plant - an anaerobic digestion plant on the Isle of Wight which will generate enough energy for the equivalent of 1,000 homes - would begin operating later this year.
The new fund is targeting cash returns of £1.25 for a net 70p invested.
This would represent a 16 per cent IRR over a four-year period, equivalent to a 30 per cent IR to an additional rate tax payer entitled to EIS income tax relief.