Greencoat Capital is pleased to announce it has signed an agreement to acquire 100% of Templeborough Biomass Power Plant Ltd (“TBPP”) from Copenhagen Infrastructure Partners (“CIP”).
The investment is being made on behalf of a number of Greencoat Capital’s pension fund clients, and represents the company’s first move into bioenergy assets following the arrival of the bioenergy team earlier this year. As with Greencoat Capital’s other strategies in renewable infrastructure, bioenergy assets provide stable, inflation-linked returns, with low correlation to the broader economy.
TBPP owns a waste wood biomass plant in Rotherham, UK which commenced operations at the beginning of 2019. It has a net capacity in excess of 40MW, generating low carbon electricity using locally sourced waste wood. The plant’s capacity is sufficient to power 78,000 homes and offset 150,000 tonnes of CO2 per year.
Development and construction of the asset was financed by CIP through its CI-II fund, successfully stewarding the project from planning stages in 2015 to commercial operations in 2019.
Minal Patel, Partner at Greencoat Capital, said:
“We are proud to have made our first bioenergy investment, and delighted with the asset that CIP has developed. Greencoat has demonstrated sector leading performance with both its wind and solar strategies, and we look forward to replicating that in the bioenergy sector where we see a significant pipeline of investment opportunities.”
Christina Sørensen, Senior Partner at CIP, said:
“We are pleased to announce that we have reached an agreement with Greencoat to divest our 100% stake in TBPP. CI-II acquired the project in 2015, financed its construction, and successfully reached commercial operations in February 2019. Since then the plant has been steadily generating renewable power from locally sourced waste wood. We would like to congratulate the new owners on the successful acquisition of a great project”.
Rothschild & Co and Mirae Asset Daewoo Co., Ltd. acted as financial advisers to CIP, while Evercore, Poyry and Eco2 advised Greencoat.