The fund is managed by investment manager FourWinds Capital Management, which specialises in natural resources and commodities.

Initially WRF will invest £4m in Monsal, taking an equity stake alongside Monsal’s management team and private equity investor, Matrix Private Equity Partners, who backed the original buy-out of the business in 2007.

WRF has also committed a further £10m for waste-to-energy projects to be developed by Monsal and WRF.

Monsal uses anaerobic digestion to break down organic matter to create biogas.

The funding will also support further expansion of Monsal’s core anaerobic digestion solutions business in the UK wastewater industry and provide infrastructure funding for biogas waste-to-energy projects.