The miller’s tale: how smart financing funded the flour power generation

Ollie, the sixth generation of his family to work at Stoate’s flour mill in Shaftesbury, Dorset, has linked up the firm’s 160-year-old iron overshot water wheel to a 21^st century hydro electric generator system to power the flour mill machinery.

And not only will it make his whole operation more productive, the savings he’ll make by generating so much additional electricity will completely offset the cost of his loan from specialist direct lenders, Rural Asset Finance.

In doing so Ollie will continue the proud renewable energy history of the site, which has boasted a water mill harnessing the river’s power for the past millennium.

“The water mill was recorded in the Domesday Book (in 1086), so it predates that,” says Ollie. “My ancestors founded the flour milling company in Somerset in 1832 and, as the business grew, my grandfather bought this water mill in the 1940s.

“It was initially for producing animal feed, but we started making stoneground flour here in the 1970s. We were organic before organic was a thing!”

A time investment

The business continued to thrive, but the latest generations of the family, Ollie and his father Michael, knew they had to upgrade the mill to become a modern milling business in the 21^st century – and were keen to find a lender that would reflect their commitment to renewable energy.

“Our plan was to install 30 solar panels on the roof of our grain store, replace all of our light fittings with LED units and, most excitingly, convert the water wheel to electricity generation. A grant from Low Carbon Dorset funded 33% of the projects, but we needed to borrow the rest – and Dad saw an advert for Rural Asset Finance. After contacting them it was obvious they were the perfect fit.”

Rural Asset Finance immediately understood the project and why it was so important to the business, says Ollie.

“It was just such a personal service,” he says. “We had approached a couple of other lenders but Rural Asset Finance came to the site, talked us through all the options, really invested time in getting to know the business and what we were about and how we operated.

“I can’t praise them highly enough. They treated us as an individual business. And they didn’t just get what we were doing, they were genuinely supportive of what we were trying to achieve.”

The process was quick too, says Ollie. “Of course, they quite rightly did all the checks and we filled in forms, but they kept us informed at every stage and, after they’d signed it off, we got the money in 24 hours. It was an excellent service.”

New upgrades

“As the terms of the grant meant Ollie had to pay the supplier outright upfront, it was vital that we could provide him with the funds to coincide with this,” says sales director Ben Wood. “He paid the supplier and because we do everything in-house, we were able to put the funds back in his account the same day.”

The upgrades mean the water mill will be able to harness energy from the Sturkel 24 hours a day, slashing the company’s energy bill so much that its savings are balancing out the cost of the repayments. “In terms of protecting our cashflow, the finance agreement we’ve arranged with Rural Asset Finance is fantastic,” says Ollie.

And in replacing the direct drive system with a generator, the new system makes for a much safer and productive environment. “The old system served us well for many years but when the belts broke down – which they did – we’d have to power down the whole operation to fix them, clear the machinery and start it all up again,” says Ollie. “We don’t have that issue anymore.”

He adds that Stoates, which prides itself on supporting local businesses by providing flour to the region’s artisan bakers, is delighted to build on its historic heritage but continue to move the family business into the future.  “It’s about progressing and developing your business while keeping traditional values – holding those values and growing with them.”

With the new generator Stoates is looking to output around 1,000 tonnes of flour in the next year, much of which will service local artisan bakers. “We’re supporting small businesses who want to use quality flour but can’t get their hands on it without ordering half a tonne,” he says. “We like working with businesses who think the same way we do. That’s why we like Rural Asset Finance. We’d definitely work with them again.”

Visit Rural Asset Finance for more smart financing information.

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