In the UK, 3i Infrastructure plc recently announced that Future Biogas, one of the largest anaerobic digestion plant developers and biogas producers in the UK, has agreed to acquire 51% of a portfolio of six gas-to-grid AD facilities, with a combined gas output of 333GWh, from JLEN Environmental Assets Group Limited for £68.1 million. £30 million will be funded by 3i Infrastructure, with the balance funded by Future Biogas from committed debt facilities.
Future Biogas is very familiar with these assets, having originally developed five of the six plants as well as operating each for an average of eight years. As majority owner, Future Biogas will be able to deliver investment-led enhancements already identified by the management team. The acquisition also provides Future Biogas with immediate scale, which we expect will be attractive to potential acquirers when we decide to exit.
In line with our original investment thesis, since 3i Infrastructure first invested in Future Biogas in 2023, the company has successfully transitioned from being a third-party plant operator to an asset owner and developer, with a 1.3TWh pipeline of new sites.
Construction has also begun at the Gonerby Moor site, which, as previously announced, will operate on an unsubsidised basis under a 15-year green gas offtake agreement with AstraZeneca.
