Friday, May 27, 2022
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Greencoat Capital is pleased to announce that funds managed by Greencoat have agreed to acquire 100% of Margam Green Energy Plant (“MGEP”), a waste wood-fired biomass plant located in Port Talbot, South Wales, from Glennmont Partners (“Glennmont”).
MGEP has been operational since May 2019 and is one of the largest biomass plants in the UK, with a processing capacity of c.290 thousand tonnes per annum (ktpa) of waste wood. The plant’s net capacity of 41.8MW is sufficient to offset around 150,000 tonnes of CO2 per year.
The acquisition is Greencoat’s third investment in large-scale bioenergy plants, following the acquisition of Templeborough Biomass Power Plant in 2019 and Sleaford Renewable Energy Plant in 2020. MGEP combusts low-quality waste wood, which is contracted to be supplied under a long-term, fixed-price supply agreement with Esken, the largest supplier of waste wood feedstock to the UK biomass sector.
The UK supply of low-quality waste wood is forecast to increase in line with economic growth and construction and demolition activity, with MGEP placed to benefit from these trends. The only other viable alternatives for these grades of wood aside from biomass are landfill or export, meaning that MGEP converts what would otherwise be waste into power.
In line with Greencoat Capital’s broader investment strategy, its bioenergy assets provide stable, inflation-linked returns which have low correlation to the wider economy, and which are well insulated from global natural resource supply issues.
Minal Patel, Partner at Greencoat Capital, said:
“We’re excited to announce the acquisition of Margam Green Energy Plant, an almost identical asset to our existing Templeborough facility, with all the benefits of familiarity and previously established operating partners and processes. We expect to continue expanding in this important sector, generating stable returns for clients whilst helping to decarbonise the UK’s electricity grid.”
Joost Bergsma, CEO and co-founder at Glennmont Partners, said:
“We are delighted to complete the sale of Margam to Greencoat, which represents a long-term investment in Welsh renewable energy infrastructure. We were pleased to work with Greencoat again following their purchase of the Sleaford plant in 2020.”
Tags: biomass, biomass plant, Green Energy Plant, Greencoat, Margam biomass, woodworking and manufacturing, woodworking industry, woodworking UK
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