The capital, which has been allocated through The North West Fund for Energy and Environmental (NWF4EE) and the Environmental Infrastructure Development Company (EIDC), will allow the formerly Ireland-based biomass heat and power business to expand its operations.

As part of the deal NWF4EE is taking a minority stake in Imperative Energy and will adopt an active role in its ongoing growth and development. Ed Simpson, investment director at CT Investment Partners, and Peter Bachmann, partner at EIDC, will join the board with immediate effect.

Imperative Energy says that it is targeting ‘significant’ growth on the back of the Renewable Heat Incentive and the Renewable Obligation Act, which was introduced in the UK last year.

The NWF4EE is managed by CT Investment Partners and is part of the £185 million North West Fund, which is provided jointly by the European Investment Bank and European Regional Development Fund.

Joe O’Carroll, managing director at Imperative Energy, says the funding will help the executive team to drive forward the business, which he says has ‘great potential to grow over the next decade’.

He adds, ‘With rising fuel costs and demand for clean technology, Imperative Energy is perfectly placed to take advantage of the opportunities that a growing alternative energy market presents.

‘Having such knowledgeable investors on board is key to growing a renewable energy business in the continuing difficult banking environment.’

Adam Workman, partner at CT Investment Partners, says, ‘By investing alongside the existing and incoming management teams, we have real confidence in what the business can achieve and look forward to supporting them in fulfilling their ambitions.

‘The move to the North West is a real coup for the clean technology sector and is a tribute to its growing prominence as a key economic driver in the region.’