Future Biogas to acquire majority stake in Six UK AD plants

3i Infrastructure announced on August 15 that Future Biogas, a developer of anaerobic digestion (AD) plants and biogas producer in the UK, has agreed to acquire a 51% stake in a portfolio of six gas-to-grid AD facilities from JLEN Environmental Assets Group. The combined gas output of these facilities is 333 GWh. The acquisition is valued at £68.1mn ($87.7mn).

3i Infrastructure will contribute £30mn towards the purchase, with the remaining balance funded by Future Biogas through committed debt facilities.

Future Biogas is well-acquainted with the assets, having originally developed five of the six plants and operated each for an average of eight years. "As the majority owner, Future Biogas will be able to deliver investment-led enhancements that have already been 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," 3i Infrastructure stated.

Since 3i Infrastructure's initial investment in Future Biogas in 2023, the company has transitioned from a third-party plant operator to an asset owner and developer, boasting a 1.3 TWh pipeline of new sites. Additionally, construction has begun at the Gonerby Moor site, which will operate on an unsubsidised basis under a 15-year green gas offtake agreement with AstraZeneca.