Foresight Group ("Foresight”), a leading independent infrastructure and private equity investment manager, has announced the investment of £6.2 million from Foresight AD EIS Fund (£4.4m) and Foresight ITS (£1.8m) to construct an Anaerobic Digestion ("AD”) plant on the Moray Estate, near Elgin in Scotland.
- £6.2 million commitment from two Foresight Funds, Foresight AD EIS Fund (£4.4 million) and Foresight ITS Fund (£1.8 million)
- The plant, located on the Moray Estate, in Elgin, Scotland is the sixth such plant Foresight has backed in the UK
- The 1MW plant will generate c. 7,000 MWh of renewable electricity per annum, enough to power around 1,700 homes while cutting greenhouse gas emissions by c. 4,000 tonnes per annum
- The plant will also produce around 20,000 tonnes of nutrient rich agricultural fertiliser per annum
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The transaction reached financial close on 1 March 2016, and at 1MW capacity, is the largest single on-farm AD plant to be built by Foresight to date.
Foresight AD EIS Fund, which raised £25 million from private investors and targets investments in small scale AD plants, has invested £4.4 million and is supported by a co-investment of £1.8 million from Foresight ITS, which targets predominantly infrastructure assets for their predictable revenue streams.
Anaerobic digestion is a natural process which takes organic matter and breaks it down, producing a gas which is turned into electricity for export to the national grid.
The process also creates digestate, a natural by-product which can be spread on the land as a fertiliser, saving money and returning nutrients to the land.
The greenfield site for the project is located on the Moray Estate, owned by the Earl of Moray. The Moray Estate will act as feedstock supplier and operator of the project, which will process c. 23,000 wet tonnes of feedstock per year, mainly consisting of rye, energy beet, cattle and chicken manure and grass silage. The plant is expected to be commissioned and operational by October 2016.
James Reid of Foresight said: "We are pleased to announce this our sixth investment into on-farm AD in the UK. Alongside the utility scale AD plants in the UK financed by Foresight, there remains a demand for small scale on farm AD across the UK presenting opportunities for our investors despite the regulatory headwinds.”
For more information contact:
Ben Thompson, Foresight Group LLP firstname.lastname@example.org +44 (0)20 3667 8155
Notes to Editors
About Foresight Group LLP ("Foresight”): Foresight Group 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 30 years.
Foresight has £1.8 billion of assets under management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs).
Foresight boasts one of the UK’s leading environmental infrastructure investment teams comprising 12 investment professionals, which has led investment into c. £800 million of UK environmental assets with a waste processing capacity of more than 1 million tonnes per annum, creating 126MW of renewable energy capacity and saving more than 600,000 tonnes per annum of CO2 emissions.
Foresight manages funds cornerstoned by the UK Green Investment Bank, the European Investment Bank, alongside London Waste and Recycling Board (LWARB), Australia’s Clean Energy Finance Corporation ("CEFC”) and funds raised from institutional and private investors, including Foresight AD EIS Fund.
In the 2015 New Energy and Cleantech awards, Foresight was named Company of the Year and Financier of the Year for the second year running. Foresight has offices in London, Rome, San Francisco, Nottingham, and Guernsey.