Foresight acquires AD plant portfolio producing enough energy to power in excess of 30,000 homes

  • Two large scale agricultural AD plants formerly part of Strutt & Parker (Farms) Limited
  • Fourth and fifth acquisitions under Foresight’s AD Aggregator Platform
  • Foresight AD portfolio grows to 32 plants and over 62MW equivalent across the UK and Europe
  • Acquisition is part of the larger sale of Strutt & Parker (Farms) Limited to Robigus Limited

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Foresight Group LLP (“Foresight”) is pleased to announce the acquisition of two large scale Anaerobic Digestion (“AD”) as part of the sale of Strutt & Parker (Farms) Limited, one of East Anglia’s oldest and best-known diversified farming businesses.

The Euston and Bay Farm plants are located in Thetford and Newmarket. In combination, the plants will produce c. 95,000 MWh of power per annum, which is the energy equivalent of powering 30,000 homes in the UK. Both plants are fully operational with remaining operating lives of 17 and 18 years for Euston and Bay Farm respectively. On an annual basis, the portfolio will offset approximately 10,700 tonnes of C02 compared electricity generated from coal. Further investment in the sites will capture all of the CO2 which will be suitable for use in drinks manufacture.

Foresight has established a market leading position in AD having previously invested into 35 greenfield and operational AD plants across the UK and Europe. The transaction is a demonstration of Foresight’s ongoing appetite to aggregate operational AD assets. This acquisition consolidates Foresight’s strong market position in the UK and enables it to continue to export the team’s deep sector experience to Europe, Australia, North America and beyond.

The transaction is a continuation of the partnership between Foresight and Material Change Ltd (“Material Change”) and its parent company Heathpatch Ltd (“Heathpatch”).  As part of the deal, Material Change has entered into long term feedstock supply, digestate offtake and management & maintenance services contracts, while Heathpatch are equity investors in the projects. Material Change now provides services to 7 AD sites and sources over 250,000T of waste and grown crop feedstock to the plants and returns 300 000T of organic matter to land from its composting and AD businesses.

Commenting on the deal, Charlie Sheldon, Director at Foresight, said: “We are delighted to have completed the acquisition of this AD portfolio alongside our partner Material Change. There is increasing demand from investors for infrastructure assets of this type. We look forward to making further acquisitions as part of our wider AD and energy from waste strategy.”

Charles Course, Material Change Ltd and Heathpatch Ltd said: “We are pleased to have further expanded our relationship with Foresight and look forward to developing and enhancing the plants acquired. We hope that the combination of Foresight’s expertise, and our knowledge and experience in agriculture, waste processing, AD development and operation will make us a first choice for anyone considering the sale, or enhancement, of AD assets.” 

Deloitte and Savills managed the sale process on behalf of Strutt & Parker (Farms) Limited, which was founded and incorporated in 1918 by the eponymous Strutt & Parker families whose association with land ownership in parts of East Anglia dates back centuries. David Jones, corporate finance partner at Deloitte, said: “We’re delighted to have played our part in delivering this historically important farming business safely into new ownership”.

Foresight continues to source and secure AD, energy from waste, and bioenergy projects and pursue both operational assets and greenfield opportunities.

Advisers include

Technical:                            Fichtner Consulting Engineers
Legal:                                    Pinsent Masons
Financial and tax:             Deloitte (Belfast)
Sales Agents:                     Deloitte

                                                                                               ENDS                  

 

NOTES TO EDITORS

‘Strutt & Parker (Farms) Limited’ is a different business to that of Property, Farm and Estate Management and Rural Specialists ‘Strutt & Parker’.

Strutt & Parker (Farms) Limited is a private company, limited by shares, incorporated in England and Wales under the Companies Act. It is headquartered near Chelmsford.

Strutt & Parker is a trading style of BNP Paribas Real Estate. The UK business’ headquarters is in London.

About Foresight Group LLP (“Foresight”):

Foresight is a leading independent infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 35 years. Foresight has £4 billion of Assets Under Management across a number of institutional and UK retail funds.

Foresight is a leading renewables infrastructure investor with over £3 billion of energy infrastructure assets under management. Foresight currently manages more than 190 renewable generation assets globally, with a total generating capacity of 1.9GW.

In Solar, Foresight has invested in over 100 solar plants and has more than 1.3GW of solar generation assets under management around the world. In Wind, Foresight has more than 330MW of wind generation assets across the UK, France and Germany.

Foresight manages 38 bioenergy and waste projects processing over 2 million tonnes per annum, having mobilised some £1.1bn of capital investment. 

In addition, Foresight manages 170MW of Reserve Power assets and three utility scale Battery Storage projects providing over 46MW of Enhanced Frequency Response (“EFR”) services to National Grid.

Foresight is headquartered in London with regional offices in Manchester, Nottingham, Edinburgh, Milton Keynes, Leicester and Guernsey and international offices in Sydney, Rome, Madrid and Seoul.

www.foresightgroup.eu

 

About Heathpatch / Material Change

Heathpatch is a family owned, 4000 acre diversified Suffolk farm business.  It employs over 290 people in its businesses involved in farming, organic waste recycling, supplying and servicing recycling machinery, production of thermal and acoustic insulation and sports products from recycled waste tyres, electronics and enclosure manufacture and property management.   It has operations in the UK, Germany, Qatar, China and Hong Kong.  Improvement of the natural environment, wildlife and habitats is a key objective, throughout the Heathpatch group. 

Material Change has developed and operates 3 AD plants and 7 composting sites as well as managing 4 AD sites for third parties. The business has developed consultancy services and assists a number of plants with accreditation reporting and compliance. It has an exceptional reputation and track record in the safe, compliant and efficient operation of organic waste processing sites.