UK-headed infrastructure and private equity investment manager Foresight Group Holdings Ltd has announced the acquisition of a 90 percent equity shareholding in Energie Tecnologie Ambiente S.r.l. (ETA) that operates a 16.8 MWe energy-from-waste (EfW) power plant in southern Italy. The seller, Marcegaglia Investments S.r.l., will retain a 10 percent equity stake. The deal is subject to closing terms and conditions.
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According to a statement, Foresight Energy Infrastructure Partners SCSp (FEIP) and JLEN Environmental Assets Group Ltd (JLEN), an environmental infrastructure investment fund managed by Foresight, will each acquired a 45 percent shareholding in ETA.
Completion of the investment is subject to a number of conditions precedent, which is expected to be satisfied by the end of May 2021, with the funds investing a combined EUR 53.5 million.
We are delighted to add our first energy-from-waste investment to the growing FEIP portfolio. This investment underlines our appetite for a diverse range of energy infrastructure projects that contribute to the transition to a low carbon economy across Europe. As with all investments in the FEIP portfolio, ETA has been externally validated as compliant with the EU Taxonomy, acting as a further endorsement of the project’s contribution to the global sustainability agenda, commented Richard Thompson, Partner at Foresight and Co-Manager of FEIP.
Operational with multi-revenue streams
Operational since 2012, ETA is a 16.8MW energy-from-waste (EfW) power plant that uses refuse-derived fuel (RDF), produced from household waste. Located in the municipality of Manfredonia in the Apulia region of southern Italy, the EfW plant processes 137 500 tonnes of waste per annum, diverting this from landfill.
The plant produces approximately 126 000 MWh of electricity per annum, enough to power approximately 35 500 homes.
ETA generates revenue from several different sources. A combination of gate fees paid by RDF suppliers, incentives from sustainably produced electricity, and the sale of electricity to the merchant power market provides ETA with a mix of revenue which mitigates counterparty and price volatility risk.
In total, 74 percent of revenues are backed by long-term contracts or subsidies. Foresight’s Italian team will remain closely involved in managing the asset.
We are happy to announce JLEN’s investment into this energy-from-waste plant which leverages the knowledge and experience gained in owning a number of bioenergy assets already. This is JLEN’s first investment in Italy and we look forward to co-owning this locally important asset alongside FEIP and the Seller. We believe that assets such as these provide a vital outlet for non-recyclable waste that would otherwise be sent to landfills, and which can be used to generate baseload power to the grid. The plant has a strong operational track record and we look forward to working with the existing operations team as a new co-owner, said Richard Morse, Chairman of JLEN.