Aurium backed Bioenergy Infrastructure Group completes transaction with UK Green Investment Bank
BIG now owns one of the largest portfolios of biomass and waste to energy facilities in the UK
Bioenergy Infrastructure Group (“BIG”), a specialist investor in the biomass and waste to energy (“WtE”) sector, today makes a substantial addition to its portfolio with 20 assets from the UK Green Investment Bank.
The assets included in the transaction are four biomass and waste to energy facilities, 15 anaerobic digestion plants and a materials recovery facility, with a combined generating capacity of more than 70MW.
Following today’s investment, BIG now owns one of the largest portfolios of biomass and WtE facilities in the UK.
The transaction is an important milestone in BIG’s ambition to more than double its assets over the next five years, strengthening its role as a market leader with the scale, asset diversification and strategy to build a long term sustainable business.
The facilities added to BIG’s portfolio through today’s transaction range in scale from 200kW to 20MW – and are dispersed around the UK, with twelve sites in Northern Ireland, seven in England and one in Scotland.
The transaction will have a significant impact on ramping up BIG’s power production capacity to more than 115MW. The largest site is the Mersey Bioenergy facility in Widnes, near Liverpool, a 20MW biomass waste-wood plant which will produce enough clean electricity to power the equivalent of 49,000 UK homes per year.
Commenting on the transaction, Hamish McPherson, CEO of BIG, said:
“Rising demand for electricity from industry and consumers and the need to treat waste in an environmentally sustainable manner reinforces the importance of investing in biomass and WtE technologies. Over the long term, these facilities will be vital to lighting and heating homes, treating waste, and supporting near-future innovations, such as driverless and electric cars.
“BIG’s aim is to support the future development of the UK’s biomass and WtE capacities – and therefore enable these technologies to make a growing contribution to the UK’s low carbon, electricity-intensive economy. And by investing in and supporting a network of efficient, technologically advanced biomass and WtE facilities, we can positively impact regional economic growth and job creation in the process.”
James Samworth, CIO of BIG, said:
“Biomass and WtE are two bioenergy asset classes capable of achieving the scale necessary to make a meaningful reduction in UK carbon emissions. BIG is constantly looking for opportunities to grow its portfolio and increase its activity in the market to support its ambitions to develop a long term sustainable business. The incorporation of these assets into BIG’s portfolio is a positive step, and ensures continuity for the companies in the portfolio and their counterparties.
”BIG’s transaction with the Green Investment Bank builds upon its current portfolio including the 24MW Energy Works facility in Hull and the 21.5MW Ince Bio Power facility in Cheshire. Once operational in 2018, Energy Works and Ince Bio Power combined will provide enough renewable energy to power the equivalent of 83,000 homes each year.
With over 115MW of operational and late-stage construction assets and a further 200MW in the pipeline, BIG is on course to make a significant contribution to the development of the UK’s low-carbon economy, by diverting over 1 million tonnes of waste from landfill and generating enough electricity for half a million homes.
BIG expects to make additional investments over the course of the next two years, and is opportunistically considering various sites in different stages of the project lifecycle across the UK. Future investment will be supported by a comprehensive capital raising programme, drawing on the support of both existing and new shareholders.