Future Capital Partners, the London-headquartered alternative investment boutique, has launched a vehicle for retail investment in the production of renewable transport fuels.

Future Fuels is a company established by FCP to build a renewable transport fuel plant in North East England. The plant will produce two main products: the renewable transport fuel (RTF), ethanol and a high-protein animal feed.

Heads of agreements have been signed with a global investment bank for the purchase of the first ten years of RTF production, while a global animal feeds business has made a commitment of between £250 and £500 million (around $404 - $808 million) over the same period to purchase the animal feed produced, the company said in a press statement.

FCP plans to raise $40 million in equity, $5 million of which it has already secured, partly through its own $3 million investment.

Once the equity has been raised FCP will commission the engineering company Simon Carves to design the plant. Once built, the plant will be leased by FCP to Vireol who will operate the completed facility.

FCP is planning a trade sale or IPO within five years of commissioning the plant, and through this and the lease of the plant, expects to provide investors with a return of 30 per cent per annum over a five to seven year period, it said in a press statement.

“The global focus on renewable energy is there for all to see, yet opportunities to invest in such an obvious growth sector are currently non-existent. Future Fuels will provide investors with the opportunity to invest in one of only three RTF production plants in the country,” said Tim Levy, chief executive of FCP.

The partnership will target high net worth individuals and sophisticated retail investors via the intermediary market, with a minimum investment required of £50,000.