Green energy group Kedco is borrowing €11 million from Ulster Bank to fund the development of a generating plant in Newry, Co Down.

Best Kedco Ltd, a joint-venture backed by the company and Farmers’ Business Development (FBD), is building a biomass-fired facility in Newry that will generate about four megawatts of electricity when it is completed.

The company said yesterday that Ulster Bank has agreed to loan up to £9.44 million (€11 million) to the development. The money will enable construction to be completed and for the commissioning of the generating plant to go ahead.

Kedco has spent about €7 million on the development.