Carbon Trust drives by-product initiative

Meat by-products may power the factories of the future. That is the belief of Carbon Trust Enterprises and Scottish and Southern Energy (SSE), which have announced a joint venture that will turn bio-waste into renewable energy.

InSource Energy was created by Carbon Trust Enterprises, a subsidiary of the Carbon Trust, to drive forward the development of the commercial waste to the energy market in the UK. The firm will initially focus on six sectors of the food industry - red meat, dairy products, distillation and breweries, fish, ready-meals and vegetables - which produce around 5.6mt of biodegradable waste a year.

SSE has agreed to invest up to £2.7m to acquire up to 40% of InSource Energy, plus up to a further £10m to fund the company's projects as it enters its next phase of development.

Tom Delay, chief executive of the Carbon Trust, said: "InSource Energy is another example of how Carbon Trust Enterprises is developing exciting low-carbon businesses and bringing opportunities for co-investment to the market.

"Waste-to-energy technology offers great potential to cut carbon emissions and our aim is to accele-rate the deployment of on-site facilities across the UK. Our partnership with SSE is a vital step in this process."

Ian Marchant, chief executive of SSE, said: "The disposal of waste in the UK is increasingly difficult. This investment enables SSE to become an active participant in a new,

sustainable and opportunity-rich sector of the UK's energy industry."

InSource Energy can develop, build, finance, own and operate waste-to-energy systems, allowing businesses to outsource waste and energy processes while benefiting from financial and carbon savings.

Initial projects will provide on-site anaerobic digesters to break down the food waste into methane, which will be captured and used to generate electricity and heat.