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Foresight boosts UK AD aggregation with 2.5 MW biogas plant in East Anglia

UK-headed infrastructure and private equity investment manager Foresight Group LLP has announced the recent acquisition of an operational 2.5 MW combined heat and power (CHP) anaerobic digestion (AD) plant in East Anglia for an undisclosed amount.

UK-headed infrastructure and private equity investment manager Foresight Group LLP has announced the recent acquisition of an operational 2.5 MW combined heat and power (CHP) anaerobic digestion (AD) plant in East Anglia for an undisclosed amount (photo courtesy Material Change).

The plant is located in Norfolk and processes approximately 40 000 tonnes of agricultural feedstock per annum to produce power for sale to the grid whilst benefiting from the associated Feed-in Tariff (FIT) income as well as Renewable Heat Incentive (RHI) revenue from on-site waste heat utilisation.

According to a statement, Foresight’s investment strategy is “wrapped around the trends shaping society” and the company has achieved a market-leading position in AD having established a portfolio of 40 greenfield and operational AD plants across the UK and Europe providing sustainable power and gas and processing a wide range of feedstocks.

The transaction, the value of which has not been disclosed, is a “demonstration” of Foresight’s ongoing appetite to pursue a sustainable investment mandate through the acquisition of operational AD assets. This deal, the sixth AD plant in the UK, consolidates Foresight’s strong market position in the UK and enables it to continue to export the team’s deep sector experience to Europe, Australia, North America and beyond.

Foresight is pleased to have finished 2019 with another AD acquisition working with our partner Material Change.  Thanks to all those at Deloitte, Pinsent Masons, Fichtner, Willis and PIB who advised us and helped to close this deal. We look forward to seeing what we can achieve in 2020, said Robert Guest, Director at Foresight.

The transaction is a continuation of the AD and Composting partnership between Foresight and Material Change Ltd (Material Change) and its parent company Heathpatch Ltd (Heathpatch). As part of the deal, Material Change has entered into long-term feedstock supply, digestate offtake and management and maintenance services contracts, while Heathpatch is an equity investor in the project.

Heathpatch and Material Change are delighted to have co-invested into and contracted with this plant as part of our partnership with Foresight. It complements the two Suffolk plants we secured together in 2019 as well as the two other Norfolk plants that Material Change has acquired separately in the same year. We look forward to building further on our now significant scale and market presence in UK AD and Composting, said Charles Course, Material Change Ltd and Heathpatch Ltd.

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