Aurium Capital Markets, Equitix and Helios Energy Investments have announced the creation of a joint venture dedicated to investing in anaerobic digestion (AD) plants.
The company, named Bio Capital, will seek to acquire new and existing facilities supplying both gas and electricity to the grid in the UK and Ireland.
It has already completed its first transaction, purchasing the largest operational plant in Scotland from Energen Biogas – a joint venture between Renewi and Paragon Efficiencies.
The facility at Cumbernauld in North Lanarkshire, which shares the name of its previous owner, produces 33GWh of electricity and 44GWh of biogas annually.
“With as many as 50 new gas-to-grid plants expected to be built in the UK over the next 18 months, AD is set to play a key role in driving the UK’s renewable energy capabilities,” said Aurium partner Steven Blase.
“At the same time, we believe that the renewables sector is poised for a consolidation phase, and we will be well placed to take advantage of growth opportunities as they arise.”
Erez Gissin, managing partner at Helios, said: “We and our partners in Bio Capital believe that the management of a well-funded portfolio will help drive returns through operational, feedstock and financial economies of scale, as well as risk mitigation via geographic and technological diversification.”
Alongside Greenstone Finance, Aurium purchased the Green Deal Finance Company and its loan book for £40 million in 2017.
In January, Equitix bought a 25.3 per cent stake in the Sheringham Shoal offshore windfarm from Statkraft as part of a deal worth £558 million.