3i Infrastructure plc announced that Future Biogas has agreed to acquire 51% of a portfolio of six gas-to-grid AD facilities, with a combined gas output of 333GWh, from JLEN Environmental Assets Group Limited for c. €79.7. €35.1m will be funded by 3i Infrastructure, with the balance funded by Future Biogas from committed debt facilities.
Construction has also begun at the Gonerby Moor site, which, as previously announced, will operate on an unsubsidised basis under a 15-year green gas offtake agreement with AstraZeneca.
Philipp Lukas, Chief Executive Officer of Future Biogas, said: “We are very pleased to be acquiring a stake in this portfolio of anaerobic digestion plants from JLEN, who we will continue to work with constructively. We know the assets well having developed them and managed them for an average of eight years. The transaction is a key step in building a scalable AD platform under Future Biogas, enabling us to upgrade the plant portfolio and extend their lives beyond the current RHI subsidy. Critically, it provides a means to continue to deliver under our Project Carbon Harvest mission to generate and supply green gas, helping decarbonise UK farms and industry.”
Scott Moseley and Bernardo Sottomayor, Managing Partners and Co-Heads of European Infrastructure, 3i Investments plc, Investment Manager of the Company, said: “It is increasingly clear that biogas will play an important role within the UK’s energy transition. This acquisition represents an important milestone, clearly establishing Future Biogas as the leading independent owner and developer of AD plants in the UK.”
Image source - Pexels.
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