Sale of two anaerobic digestion facilities

QMPF is pleased to announce that it has advised the shareholders on the successful sale of two anaerobic digestion (“AD”) facilities to the listed environmental investment fund John Laing Environmental Assets Group (JLEN). The plants, Egmere Energy and Grange Farm Energy, have a combined capacity of c. 10MWth and were developed by Future Biogas. QMPF advised the vendors, Downing LLP managed venture capital funds, EIS funds managed by Amersham Investment Management Ltd, and Future Biogas, on the sale for a total consideration of c. £36m including working capital. Our role covered the valuation, marketing and tender process for the sale.

The Egmere Energy AD plant is located in Egmere, North Norfolk and was commissioned in November 2014. The plant has a thermal capacity of c. 5MWth and predominantly produces biomethane to be injected to the national gas grid. In addition, the plant also has a 0.5MWe CHP engine and is accredited under the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FiT) schemes.

The Grange Farm Energy AD plant is located in Spridlington, Lincolnshire and was commissioned in December 2014. The plant has a thermal capacity of c. 5MWth and predominantly produces biomethane to be injected to the national gas grid. In addition, the plant also has a 0.5MWe CHP engine and is accredited under the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FiT) schemes.

Future Biogas Limited will continue to provide management, operations and maintenance services to the AD plants after the acquisition.

Clare Lacey, Partner at QMPF said “QMPF is pleased to have advised on this significant transaction for the AD market.  Once again it has demonstrated the breadth and depth of our renewable energy sector expertise. In addition to having now advised on the successful sale of 4 AD plants in the last 12 months, our team has also been involved in 9 district heating projects and is actively advising on 3 further AD remits.”

Philipp Lukas, Managing Director at Future Biogas said “We have worked with QMPF over several years exploring financing and sale opportunities for a number of our AD plants. They have proved to be excellent advisors whose input to strategy and use of wider market contacts added significant value to the subsequent transactions.”