REG - 3i Infrastructure - Future Biogas further investment

3i InfrastructureAnnouncement

15/08/2024 07:00

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RNS Number : 5078A  3i Infrastructure PLC  15 August 2024

3i Infrastructure backed Future Biogas acquires portfolio of six anaerobic
digestion facilities

15 AUGUST 2024

 

3i Infrastructure plc ("3i Infrastructure" or "the Company") today announces
that Future Biogas, one of the largest anaerobic digestion ("AD") plant
developers and biogas producers in the UK, 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 ("JLEN") for £68.1
million. £30 million will be funded by 3i Infrastructure, with the balance
funded by Future Biogas from committed debt facilities.

 

Future Biogas is very familiar with these assets, having originally developed
five of the six plants as well as operating each for an average of eight
years. As majority owner, Future Biogas will be able to deliver investment-led
enhancements already identified by the management team. The acquisition also
provides Future Biogas with immediate scale, which we expect will be
attractive to potential acquirers when we decide to exit.

 

In line with our original investment thesis, since 3i Infrastructure first
invested 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 1.3TWh pipeline of new sites.

 

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."

 

-ENDS-

 

 

For further information, contact:

 Thomas Fodor         Tel: +44 20 7975 3469

 Investor enquiries   Email: thomas.fodor@3i.com (mailto:thomas.fodor@3i.com)

 Elmley de la Cour    Tel: +44 20 7975 3023

 Media enquiries      Email: elmley.delacour@3i.com (mailto:elmley.delacour@3i.com)

 

 

Notes to editors:

 

3i Infrastructure plc

 

3i Infrastructure plc is a Jersey-incorporated, closed-ended investment
company, an approved UK Investment Trust, listed on the London Stock Exchange
and regulated by the Jersey Financial Services Commission. The Company's
purpose is to invest responsibly in infrastructure, delivering long-term
sustainable returns to shareholders and having a positive influence on its
portfolio companies and their stakeholders.

 

3i Investments plc, a wholly-owned subsidiary of 3i Group plc, is authorised
and regulated in the UK by the Financial Conduct Authority and is the
investment manager of 3i Infrastructure plc.

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