Future Biogas, a leading developer of anaerobic digestion (AD) plants and biogas producer in the UK, has agreed to acquire a 51% stake in a portfolio of six gas-to-grid AD facilities. The transaction, valued at £68.1 million, is being funded with £30 million from 3i Infrastructure plc, while the remaining amount will be financed by Future Biogas through committed debt facilities. These six facilities have a combined gas output of 333GWh.
Future Biogas has a deep familiarity with these assets, having originally developed five of the six plants and operated them for an average of eight years. As the new majority owner, Future Biogas plans to implement investment-driven enhancements identified by its management team. The acquisition also provides the company with immediate scale, enhancing its attractiveness to potential future acquirers.
Since 3i Infrastructure’s initial investment in Future Biogas in 2023, the company has successfully transitioned from being a third-party plant operator to an asset owner and developer, with a pipeline of new sites totalling 1.3TWh. Additionally, construction has commenced at the Gonerby Moor site, which will operate on an unsubsidised basis under a 15-year green gas offtake agreement with AstraZeneca.
Philipp Lukas, Chief Executive Officer of Future Biogas, commented: “We are very pleased to acquire a stake in this portfolio of anaerobic digestion plants from JLEN, with whom we will continue to work constructively. We are well-acquainted with these assets, having developed and managed them for an average of eight years. This transaction is a critical step in building a scalable AD platform under Future Biogas, allowing us to upgrade the plant portfolio and extend their operational lives beyond the current RHI subsidy. Importantly, it supports our Project Carbon Harvest mission to generate and supply green gas, contributing to the decarbonisation of UK farms and industry.”
Scott Moseley and Bernardo Sottomayor, Managing Partners and Co-Heads of European Infrastructure at 3i Investments plc, added: “It is increasingly evident that biogas will play a significant role in the UK’s energy transition. This acquisition is a key milestone, firmly establishing Future Biogas as the leading independent owner and developer of AD plants in the UK.”
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