Photo of Robert Kuik and David Tillmanns, Royal FrieslandCampina.
This funding solution, provided by ABN AMRO and the European Investment Bank, responds to a specific need among the farming community and helps to reduce CO2 emissions.
Amersfoort, The Netherlands
Royal FrieslandCampina is one of the largest dairy cooperatives in the world, with an annual turnover of €12bn and 18,000 member farmers.
Manure mono-fermentation reduces the greenhouse gas emissions from farms and produces heat and biogas which can be converted into green gas and sold to the natural gas grid system.
When setting up a system, the technology used is still new and therefore expensive. The financial position of farmers using this equipment, in terms of their debt capacity, is not necessarily credible under such circumstances. As such, it is basically impossible for them to attract standardised and regular funding for this kind of investment on their own.
Royal FrieslandCampina and its farming community have a common goal of reducing their carbon footprint; a project called Jumpstart was initiated to help achieve this aim. The main goal was to implement these systems with 1,000 farmers. Over a period of eight years it is expected to reduce their CO2 output by 500,000 tons annually. “This is equal to removing 250,000 cars from the road,” explains David Tillmanns, Deputy Treasurer.
Royal FrieslandCampina’s corporate treasury was asked to come up with a tailor-made funding solution for 1,000 installations, with a total investment of €250m. “Because it is not possible for an individual farmer to obtain financing for such an investment, it was clear that this project would only succeed if the resources of Royal FrieslandCampina were used, and the risks shared between the participating farmers, Royal FrieslandCampina and a financial institution,” adds Tillmanns.