- Acquisition of operational 2.5MW Combined Heat and Power (“CHP”) AD plant
- Sixth AD plant acquisition made via Foresight’s AD Aggregator Platform
- Foresight’s bioenergy and waste portfolio grows to 40 projects of 58MW of clean electricity and 49MW of thermal energy
Foresight Group LLP (“Foresight”) is pleased to announce the acquisition of a 2.5MW Anaerobic Digestion (“AD”) plant in East Anglia.
The plant is located in Norfolk and processes approximately 40,000 tonnes of agricultural feedstock per annum to produce power for sale to the grid whilst benefiting from the associated FiT income as well as RHI revenue from on-site waste heat utilisation.
Biomass is the largest source of renewable energy in the UK, amounting to 40% of all energy consumption from renewable and waste sources. The annual output levels of well-run biomass plants can be in excess of 90% of maximum theoretical capacity. Bioenergy provides baseload contribution to the UK grid system to complement intermittent generation from technologies such as solar and wind. AD plants like this one play an important role in enabling the transition away from fossil fuels and ensuring the UK meets its net-zero by 2050 target.
Foresight’s investment strategy is wrapped around the trends shaping society and the company has achieved a market-leading position in AD having established a portfolio of 40 greenfield and operational AD plants across the UK and Europe providing sustainable power and gas and processing a wide range of feedstocks. The transaction is a demonstration of Foresight’s ongoing appetite to pursue a sustainable investment mandate through the acquisition of operational AD assets. This deal 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 AD and Composting 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 and maintenance services contracts, while Heathpatch is an equity investor in the project.
Robert Guest, Director at Foresight, commented: “Foresight is pleased to have finished 2019 with another AD acquisition working with our partner Material Change. Thanks to all those at Deloitte, Pinsent Masons, Fichtner, Willis and PIB who advised us and helped to close this deal. We look forward to seeing what we can achieve in 2020.”
Charles Course, Material Change Ltd and Heathpatch Ltd said: “Heathpatch and Material Change are delighted to have co-invested into and contracted with this plant as part of our partnership with Foresight. It complements the two Suffolk plants we secured together in 2019 as well as the two other Norfolk plants that Material Change has acquired separately in the same year. We look forward to building further on our now significant scale and market presence in UK AD and Composting.”
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NOTES TO EDITORS
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 over £4 billion of Assets Under Management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs), Venture Capital Trusts (VCTs) and Inheritance Tax Solutions using Business Relief (BR).
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 over 2.0GW.
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 370MW of wind generation assets across the UK, France and Germany.
Foresight manages 40 bioenergy and waste projects processing over 1.7 million tonnes per annum, having mobilised over £1 billion of capital investment.
In addition, Foresight manages 170MW of Reserve Power assets and three utility scale Battery Storage projects providing 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, Cambridge and Guernsey and international offices in Sydney, Rome, Madrid and Seoul.