Funding enables the further development and construction of energy efficient installations for the UK poultry sector and expansion of Lumicity’s business model into other EU markets.
Lumicity Limited (“Lumicity” or the “Company”), a specialist agritech energy services provider focused on the agricultural and horticultural food sectors, has finalised a management buy out from its original institutional shareholders Ludgate Environmental Fund and ESB Novus Modus, who first invested in the company in 2010. Lumicity has secured the buy out and expansion capital from RWE Supply & Trading.
The funding will enable Lumicity to expand and enhance its offering in the UK poultry sector, where shifting to renewable energy can result in substantial savings and bird welfare improvements. Lumicity will finance and construct energy efficient poultry houses that incorporate biomass heating systems, solar PV, LED lighting, and rainwater harvesting and filtration systems on behalf of its customers.
Lumicity’s Founder and CEO Tristan Fischer said: “The agricultural sector is a competitive and price sensitive environment. Rising commodity prices have been driving up costs, and increased competition between supermarkets has put pressure on food prices. That is why farmers are focused on finding ways to reduce costs. The investment from RWE will allow Lumicity to help farmers to become more energy efficient, which will not only reduce energy costs, but also reduce feed costs combined with an accelerated growth cycle, with no upfront investment by them. The agritech solutions we provide are good for our customers, good for the environment and good for bird welfare.”
Lumicity has in-depth experience in the poultry sector and has already installed £25m of Biomass heating systems across 248 turkey sheds owned by Bernard Matthews, the UK’s number one turkey producer, the largest such installation in the UK.
The Company is currently developing a number of poultry projects and plans to finance and develop over c. £100 million in this sector over the next 12 months. There is no requirement for farmers to have access to upfront capital or experience with renewable energy when they work with Lumicity, as the
Company deals with the planning processes, sources the best technologies and suppliers and pays for the installation, maintenance and operation of the sheds. In return, the farmer enters into a lease and energy contracts, paying a fixed tariff for the energy and fitted out buildings and after 25 years the building and equipment reverts to the farmers’ ownership.