Carbon Capture Scotland (CCS) is one of the UK’s leading net-zero carbon capture specialists. Their cutting-edge technology enables the decarbonisation of industries that emit biogenic CO₂ from the decomposition, fermentation, or combustion of organic matter.

CCS works with farmers, distillers and energy-from-waste firms to capture CO₂ and put it to good use elsewhere – such as for the production of dry ice. As the UK’s second largest dry ice manufacturer, CCS caters to the needs of the pharmaceutical and food transport industries, helping to make these industries more sustainable. Any captured CO₂ which CCS can’t utilise is permanently stored via secure geological storage. This allows CCS to create high quality, engineered carbon removal credits that can be used to decarbonise hard to abate sectors and help companies hit their net zero targets on time.

In November last year, CCS announced the launch of Project Nexus, aiming to remove a million tonnes of CO₂ a year from the atmosphere by 2030 and to sequester 90% of Scotland’s biogenic CO₂ emissions by 2040 – the equivalent to the decarbonisation of 800,000 homes. CCS plans to invest £120 million in a series of infrastructure and supply chain projects as part of Nexus, which will also create around 500 new jobs in rural Scotland. 

Planning to raise equity and debt to kickstart their next phase of growth, CCS were looking for a reliable banking partner that would align with their green credentials and support their growth. The Royal Bank of Scotland¹ had approached CCS before to offer advice, and now both sides engaged in detailed conversations to discuss CCS’s immediate and future financing requirements.

Based on these discussions, and after CCS secured a seven-figure equity injection from Steyn Group (an international family office based in London), the bank and CCS teams agreed a 5-year £4 million Term Loan Facility and a 6-month £800k Grant Bridge facility. Applying a funding structure specific to new, high-growth businesses like CCS enabled the deal team to provide CCS with access to senior debt early on in their journey and to significantly reduce the cost, and optimise the tenor, of the debt.

The Term Loan will help refinance a development loan as well as provide additional liquidity to accelerate growth, whilst the Grant Bridge facility will fund two modular carbon capture units – developed by the founders – until a government grant is received. The two modular units will triple the volume of CO₂ captured over the next 12 months. 

Ed and Richard Nimmons, Co-founders and Directors of Carbon Capture Scotland, said: “This is not just a re-finance deal. This is real action being taken by a major bank demonstrating their commitment to helping society achieve net zero. Royal Bank has further strengthened Carbon Capture Scotland’s foundations, building our carbon capture infrastructure which will remove over 1 million tonnes of CO₂ per year this decade and allow us to deliver permanent high quality carbon removal credits to the market.”

Ramin Mathieson, Director, UK Financing Solutions at Royal Bank of Scotland, commented: “We are delighted to be able to support Scotland’s net zero journey by providing this financing package to CCS whose purpose aligns closely with our own values. Tackling climate change is of paramount importance to our business, our customers, and the economies we operate in, and we continue to support those on their journey towards sustainable operations and those, such as CCS, helping others to become more sustainable. Our involvement in this transaction is also testament to our commitment to offer £100 billion Climate and Sustainable Funding and Financing by the end of 2025 to help achieve net zero. We are looking forward to also supporting CCS with Project Nexus.”  

1: The Royal Bank of Scotland plc is part of NatWest Group

IMAGE: © Carbon Capture Scotland