Friday, July 3, 2020

Sleaford Renewable Energy Plant acquired

Greencoat Capital LLP has acquired Sleaford Renewable Energy Plant in Lincolnshire from Glennmont Partners.

The investment was made with funds from RPMI Railpen, the investment manager for the £30bn Railways Pension Scheme, and Greencoat Renewable Income (GRI), the diversified fund, with commitments from UK Corporate and Local Government Pension Schemes.

The terms of the transaction are not being disclosed.

Sleaford is an operational 39 MWe renewable CHP plant, which uses a blend of straw and sustainable woodchip to generate renewable power and heat. The plant benefits from well contracted Government-backed cashflows 2.0 ROCs per MWh and has circa 15 years of ROC life remaining.

Located within the ‘Grain Belt’, in Lincolnshire, the plant provides a reliable route to market for straw, an agricultural by-product which can represent an additional income source for local farmers.

Heat generation by the plant is provided to the local swimming pool and other community facilities and the plant has recently signed a new community funding agreement with the council.

Sleaford is the second biomass plant acquired and operated by Greencoat following the acquisition of the Templeborough Biomass Power Plant in November 2019 continuing Greencoat’s advance into the bioenergy sector. This is the fourth investment of Greencoat’s recently launched diversified private markets fund, Greencoat Renewable Income LP.

Minal Patel, Partner at Greencoat Capital, said: “Sleaford is a high-quality asset that will deliver predictable cashflows and significant inflation protection over the long term, helping our clients meet their liabilities.

“It also plays an important role in the area, supplying sustainable heat to local community facilities and providing arable farmers with a reliable offtake for their excess straw. We look forward to assuming stewardship of the plant as part of our strategy to build our portfolio of diversified renewable energy investments.”

Lewis Vanstone, Deputy Portfolio Manager of Railpen’s Long-Term Income Fund, said:
“The project is an ideal match for the Long-Term Income Fund’s continued focus on investing in a diversified portfolio with sustainable, long-dated and asset-backed income characteristics, particularly in the current environment.

“We hope to continue playing an active role in the UK’s transition to a low carbon economy while securing stable cashflows for our members. We are delighted to be partnering with Greencoat Capital in the acquisition of Sleaford. We look forward to working with Greencoat, and to growing this relationship.”

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