A YORK headquartered biomass supplier has secured a six-figured sum from the Northern Powerhouse Investment Fund as it looks to build on trebled sales over the last three years.

VerdEnergy, which has become one of the region’s leading suppliers of biomass wood pellets, has secured £200,000 to support its further growth from NPIF – Mercia Debt Finance, which is part of the Northern Powerhouse Investment Fund.

VerdEnergy supplies customers throughout the North of England from its headquarters in York, depots in Richmond and Goole and through its growing fleet of specialist delivery vehicles.

VerdEnergy was established in 2015 by the team behind renewable energy system installer Duncan Renewables. Co-founder Mark Duncan said they had realised there was a gap in the market for a good quality wood pellet supplier and decided to create a full-service solution.

Their approach has proved a success, with volumes more than trebling in the past two years.

Ian Atkinson, investment manager at Mercia Fund Managers which manages NPIF – Mercia Debt Finance, said: “Biomass offers an environmentally-friendly, lower-cost alternative to conventional energy sources and take-up is growing amongst hotels, country estates, commercial occupiers and domestic users.

“VerdEnergy has quickly established itself as the region’s premier supplier. The funding will provide additional working capital to fund extra pellet shipments and support the increased demand.”

Grant Peggie, director at British Business Bank, said: “The Northern Powerhouse Investment Fund has created additional sources of funding for those companies looking to obtain growth finance. We are pleased that NPIF is supporting SMEs in the North and providing the funding required to fuel economic growth across the region.”

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF).