Greensphere Capital Acquires Western Bio-Energy Limited
September 30 2013
Greensphere Capital LLP (“Greensphere”) is delighted to announce that it has completed the acquisition of Western Bio-Energy Limited, a 14.7MWe capacity wood and Grade A waste wood fuelled biomass power plant located in Port Talbot, Wales.
The acquisition was completed with funds managed by Greensphere on behalf of the UK Green Investment Bank, Stobart PLC and Signia investors. Greensphere led the deal, and will manage the investment.
Greensphere has sourced a significant minority of the investment from the UK Green Sustainable Waste and Energy Investments fund (UKGSWEI), which is managed by Greensphere on behalf of the UK Green Investment Bank. Greensphere was awarded a fund management mandate from the UK Green Investment Bank (GIB) for waste and waste-to-energy investments, after an extensive process involving 23 fund managers. The GIB is now one of several investors in funds managed by Greensphere.
The majority of the remaining funds were sourced by Signia to be invested by Greensphere Capital. Greensphere sees Signia as a key partner in its investment platform. Signia brings the ability to leverage large pools of capital from the wealth management market. Signia’s principal focus is to source and structure bespoke investment opportunities for its private clients. The acquisition of Western Bio-Energy Limited allowed Signia to bring together clients with a specific interest in sustainable energy and infrastructure and Greensphere in its capacity as the specialist investment manager. This is the first infrastructure investment Signia has introduced to its clients and illustrates the growing momentum of its alternative asset proposition. Working alongside Signia has enabled Greensphere to reach into a hereto untapped source of capital to grow the UK’s core infrastructure.
The Western Bio-Energy biomass plant was the first commercial-scale power station of its kind in Wales. Construction started in 2006 and created 200 construction jobs at that time. The plant became fully operational in October 2008 and has delivered one of the highest levels of availability in the UK for such a plant. The plant burns approximately 150,000 tonnes of feedstock per annum to produce electricity sufficient to power 28,800 homes.
Greensphere is delighted to be working with the strong operating team at Western Bio-Energy and will be investing to upgrade the plant and will make investments to implement plans to increase the quantity of Grade A waste wood that the plant can convert to power.
Feedstock sourcing for the plant will be underpinned by an exclusive Master Framework Agreement between Greensphere and Stobart Biomass Products Limited (“Stobart Biomass”) which was recently signed for the supply of up to 1,000,000 tonnes of biomass fuel per annum into the Port Talbot plant as well as the other plants Greensphere Capital will be acquiring or developing in the future.
The Western Bio-Energy plant represents a key investment by Greensphere in a national platform of waste biomass power plants. Greensphere has worked closely with Stobart Biomass over the past 18 months in the renewable sector and together they have identified a number of existing and new build biomass projects for possible investment by funds managed by Greensphere.
Jon Moulton, Chairman of Greensphere Capital said, “This is yet another major step in improving waste-to-energy infrastructure in the UK.”
Divya Seshamani, Managing Partner of Greensphere Capital, added, “Following on from our successful Anaerobic Digestion platform, this investment in Western Bio-Energy, and our recently agreed master framework agreement with Stobart Biomass securing feedstock, are the first steps in our second major investment platform of waste wood biomass to energy.”
Nathalie Dauriac, Founder and CEO of Signia Wealth Limited said, “We have a very successful and active investment offering but I am particularly pleased that this substantial transaction is focused on the infrastructure sector as it has brought Signia together with the industry expert Greensphere Capital and allowed us to introduce this niche sector to our clients. I am extremely impressed with Greensphere’s capabilities and am excited about the significant opportunities I believe we will have to work together in the future.”
Shaun Kingsbury, chief executive, UK Green Investment Bank, said: “This investment will secure the long-term future of an important Welsh renewable energy plant and will improve its efficiency and sustainability. The Greensphere fund was set up, in part, to help support the UK’s waste wood biomass sector and its first acquisition of an operational asset is an important step.”
About Greensphere Capital
Greensphere Capital LLP ("Greensphere") is an FCA authorized and regulated specialist investment firm focused on sustainable energy and infrastructure. It was established in February 2011 by its three founding members: Divya Seshamani, Vince Julier and Jon Moulton (as non-executive Chairman), in order to bring discipline and rigour to sustainability and clean energy investing.
Greensphere invests in assets, on behalf of its investors, to create portfolios of long-term cash-yielding investments, underpinned by material and defensive sub-sector platforms. The first sub-sector platforms are concentrated on UK waste and waste-to-energy, namely Anaerobic Digestion and Waste Wood Biomass. Greensphere closed its first major investment platform, in Anaerobic Digestion, in November 2012.
Greensphere Capital has sourced a proportion of the investment from the UK Green Sustainable Waste and Energy Investments fund (UKGSWEI), which is managed by Greensphere on behalf of the UK Green Investment Bank. Greensphere was awarded a fund management mandate from the UK Green Investment Bank (GIB) for waste and waste-to-energy investments, after an extensive process involving 23 fund managers. The GIB is now one of several investors in funds managed by Greensphere.
About the Green Investment Bank
The UK Green Investment Bank was launched in November 2012. With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a "for profit" bank, whose mission is to accelerate the UK's transition to a greener economy, and to create an enduring institution, operating independently of Government.
About Stobart Biomass
Stobart Biomass is a leading processor, supplier and transporter of biomass fuels, forming a supply partnership with customers, which plays a valuable role in meeting the UK’s biomass targets. Stobart Biomass employs around 300 personnel and is now at the forefront of the fast-developing UK market.
Today Stobart Biomass is processing material at a national network of strategically located sites close to both the feed stocks and the end users, minimising unnecessary transport and cutting carbon emissions. These sites also offer valuable stockpiling capacity, providing ample material to meet peak winter demands.
Transportation is an important factor in the supply of all forms of solid fuel. Around 40% of the cost of biomass fuels is attributable to logistics and cost-effective, environmentally responsible delivery to market is essential. Drawing on the industry-leading logistics capability of Eddie Stobart and its dedicated environmental transport fleet, Stobart Biomass is capable of matching the smallest up to the largest fuel contracts with unrivalled logistics capability and benchmark standards of efficiency.
About Stobart Group
With over 5,900 employees operating from more than 50 sites across the UK and Europe, Stobart is a UK front-runner in the multimodal logistics, warehousing, civil engineering, rail infrastructure and biomass fuel sectors. At the core of the Group is the Transport and Distribution division, incorporating Eddie Stobart - the iconic name behind a huge road haulage fleet totalling some 2,400 vehicles, over 3,000 trailers and over seven million square feet of warehousing. Stobart Estates, Stobart Infrastructure and Civils, Stobart Air and Stobart Biomass divisions complete the Group's business structure.
About Signia Wealth
Signia Wealth is a boutique and independent wealth manager that specialises in strategic wealth management for ultra-high net worth individuals, families and trusts. Following the events of 2008 and the banking crisis, Signia Wealth was established in March 2010 as an alternative to the traditional wealth management model. Since its launch, Signia Wealth has gained over £2bn in assets under supervision. Signia Wealth aims to meet client demand by providing market leading innovative solutions, transparency and a dynamic approach to private client wealth management. Signia Wealth Limited is authorised and regulated by the Financial Services Authority (FSA). Signia Wealth’s registration details are set out in the FSA Register: Firm Reference No 513138 www.fsa.gov.uk/register. Signia Wealth Limited is a private limited company incorporated in England and Wales under company number 07044573 with its registered office located at One Connaught Place, London, W2 2ET.
Greensphere Capital LLP
Tel: 0203 697 8957
Invests in Greenlight AD Power
November 28 2012
Greensphere Capital is delighted to announce an investment in Greenlight AD Power. Greensphere Capital is committing an initial investment of £16 million into the construction of a 5.1 MW capacity AD plant in Teesside, with a view to rolling out further plants at pre-identified sites in what is likely to be the leading Anaerobic Digestion (AD) platform in the UK.
Growing to 6 plants across the UK, the platform will entail an investment plan of about £100 million over the next 5 years. The platform will be established through a holding company, Greenlight AD Power.
Jon Moulton, Chairman of Greensphere Capital said, “I have made a good living from eliminating waste. This investment not only eliminates waste, it makes money from it and helps the environment."
Divya Seshamani, Managing Partner of Greensphere Capital added, “Greensphere’s strategy is to help build a platform of low-cost, flexible AD plants based on sound technology and secure feedstock contracts. The use of AD technology for the upgrading and treatment of waste, adds to the stock of sustainable infrastructure in the UK as well as providing a valued source of renewable power. We are excited to work with Earthly Energy to create such a platform”
Greenlight AD Power will be working with BioConstruct GmBH to provide the technology for the AD plants.
When fully constructed and operational, the six AD plants will deliver a combined capacity of in excess of 30 MW of electricity to the national grid and in doing so will process over 550,000 tonnes of waste the majority of which would otherwise be destined for landfill disposal. Furthermore, approximately 15,000 tonnes of CO2e emissions will be avoided per plant per annum. This programme, which has been 5 years in the making, takes AD to an industrial scale in the UK.
Vince Julier, Partner at Greensphere Capital said, “Greenlight AD Power is committed to delivering a first class, accredited training programme for all employees, setting a new benchmark in the AD industry and bringing into the UK leading technology for the new and growing UK AD market. The first plant alone will create around 21 new full time employees, with over 40 jobs involved during construction."
Another key challenge identified in building an industrial scale AD platform is the successful deployment of the logistics required to deal with the large tonnage of waste being moved to each plant. Greensphere Capital is proud to announce that it secured the Stobart Group as a key co-investor in the platform."
Vince Julier added, “Greensphere sees Stobart’s involvement as a key value-added co-investor in the Greenlight AD Power platform as an important element in the stable and successful growth of the platform. Stobart Group’s deep logistics knowledge and biomass experience will complement BioConstruct’s specific domain expertise perfectly.”
Richard Butcher (CEO Stobart Estates) commented, “This is an excellent investment opportunity for us, alongside credible co-investors. There will potentially be significant Transport opportunities for Eddie Stobart Ltd together with Civils opportunities for Stobart Developments and the involvement with AD will complement our existing Stobart Biomass business.”
Shaun Kingsbury, Chief Executive Officer of the UK Green Investment Bank said; “This Greensphere-led project typifies the kind of investment the Green Investment Bank was set up to make. It injects capital alongside the private sector into one of our priority investment sectors, providing the additional funding required to enable these projects to proceed. The plant will also add to the UK’s electricity generation capacity whilst realising significant environmental benefits, including the diversion of waste from landfill.”
About Greensphere Capital
Greensphere Capital LLP ("Greensphere") is a specialist investment firm focused on sustainable energy and infrastructure. It was set up to bring discipline and rigour to sustainability and clean energy investing and focuses on supporting investments that enable current infrastructure to function more efficiently and on a more sustainable basis. Greensphere capital focuses 5 key investment sectors; Water, Waste, Distributed Generation, Energy Transmission and Distribution (including gas) and Infrastructure Efficiency.
UK Green Sustainable Waste and Energy Investments fund (UKGSWEI) is managed by Greensphere on behalf of the UK Green Investment Bank. UKGSWEI has invested £8 million in the project. Greensphere Capital invested an additional £8 million in matching private sector funding, raising the total equity investment to £16 million.
About Stobart Group
Stobart is listed on the London Stock Exchange in the FTSE 250 (LSE:STOB). With over 6,600 employees operating from more than 50 sites across the UK and Europe, Stobart is a UK front-runner in the multimodal logistics, warehousing, civil engineering, rail infrastructure and biomass fuel sectors. At the core of the Group is the Transport and Distribution division, incorporating Eddie Stobart – the iconic name behind a huge road haulage fleet totalling some 2,500 vehicles, over 4,000 trailers and over seven million square feet of warehousing. Stobart Estates, Stobart Infrastructure and Civils, Stobart Air and Stobart Biomass divisions complete the Group’s business structure. See: www.stobartgroup.com
About BioConstruct GmbH
Under the slogan “Intelligent biogas plants”, employees of BioConstruct GmbH have been constructing turnkey biogas systems since 2001.
The projects completed by the company to date, which range from agricultural biopower plants that solely process renewable raw materials and industrial pure waste fermentation systems to co-fermentation plants for liquid manure and organic residue, are testimony to its wide-ranging experience. Since it was founded in 2001, BioConstruct has successfully commissioned over 150 plants with a combined output of over 80 megawatts.
The technology used in BioConstruct biogas installations meets the most rigorous standards and is permanently monitored by a fault management system. The plants are meticulously planned, exceedingly low-maintenance and furnish demonstrably higher yields as a result. See: www.bioconstruct.com
About UK Green Investment Bank
The UK Green Investment Bank was established by the UK Government to invest in green infrastructure projects focusing on five priority sectors. It will accelerate private sector investment in the UK’s transition to a green economy. The Government has allocated £3bn for the bank to invest, on sound financing principles, by April 2015. Offshore wind power generation, commercial and industrial waste processing and recycling, energy from waste generation, non-domestic energy efficiency and support for the Green Deal will be the first priority sectors. Headquartered in Edinburgh, the Bank received state aid approval from the European Commission in October 2012.
Greensphere Capital LLP
Win UK Government Mandate
London - Greensphere Capital LLP (Greensphere) is pleased to announce that it
has been chosen as a fund manager by the UK Government, having been supported
by EIDC. The move represents a landmark investment in green infrastructure
whereby the UK Government is investing directly, on fully commercial terms,
ahead of obtaining state aid approval for the UK Green investment Bank (GIB).
After an extensive process to which 23 managers applied Greensphere, working
with EIDC, were selected as one of two specialist fund managers. An initial
£80 million has been committed to the managers for investments in the
small scale waste infrastructure sector. All Government investments made by
the fund managers will be match-funded, leveraging in at least £80 million
more into the projects.
For this mandate, Greensphere will be responsible for generating and
managing investments in areas such as waste recycling and reprocessing facilities,
pre-treatment projects and energy-from-waste projects. Greensphere's primary
investment strategy is investing in improving efficiency and upgrading infrastructure
assets in sectors such as distributed power, waste, transportation and logistics,
energy mid-stream (transportation, distribution and storage of energy) and water.
Jon Moulton, Chairman of Greensphere Capital, commented "The mandate
from the UK Government represents a significant win for Greensphere. It represents
a vote of confidence in Greensphere's team which is extremely pleasing to see."
Divya Seshamani, Managing Partner of Greensphere Capital sees the relationship
with the UK Green Investments (UKGI) as significant for the sector. She said: "We
are excited about the opportunity to work with the Government on leveraging capital
into the UK green infrastructure sector. Large, high-quality institutional investors
look to invest through institutional-grade fund teams. Greensphere Capital has built
a blue-chip team with a keen focus on creating value for these investors."
Commenting on Greensphere's investment strategy, Vince Julier, Partner of Greensphere Capital said: "A key capability that Greensphere brings is the ability to partner with industry leading specialist developers in each of the sectors we focus on. " Julier believes this strength allows Greensphere to access proprietary deal pipeline in sectors where many propositions are not "investible".
The mandate with the UK Government exemplifies Greensphere's innovative strategy of working with a few large, high-quality investors on a bespoke basis rather than a traditional private equity fund structure which Greensphere sees as outmoded for the infrastructure sector.
For more information please contact:
Greensphere Capital LLP
Tel: 0207 355 6925
Greensphere Capital LLP
Tel: 0207 355 6926
About Greensphere Capital:
Greensphere Capital LLP ("Greensphere") is a specialist investment firm focused on sustainable energy and infrastructure. It was set up to bring discipline and rigour to sustainability and clean energy investing and focuses on supporting investments that enable current infrastructure to function more efficiently and on a more sustainable basis.
For more information visit www.greenspherecapital.com
For more information visit www.eidc.co.uk
About UK Green Investments:
The Government is investing as UK Green Investments (UKGI) in green infrastructure projects from April 2012 focusing on the GIB's five priority sectors, ahead of obtaining state aid approval for the GIB.
The GIB is designed to accelerate private sector investment in the UK's transition to a green economy. Offshore wind power generation, commercial and industrial waste processing and recycling, energy from waste generation, non-domestic energy efficiency and support for the Green Deal will be the first priority sectors for the GIB, subject to approval by the European Commission.
The Government is committed to setting the UK firmly on course towards a green and growing economy. The transition to a green economy presents significant growth opportunities for UK-based businesses, both at home and abroad. This progression requires unprecedented investment in key green sectors. An estimated investment of up to £200 billion in the energy system alone is needed over the period to 2020. The GIB will be uniquely placed to facilitate the transition to a green economy base by addressing the market failures affecting green infrastructure projects. These failures have led to significant under investment in the key areas required to deliver this transition. Capitalised with £3 billion, the GIB will complement other green policies to help accelerate additional capital in green infrastructure.
The UK Green Investment Bank (GIB) will be based in Edinburgh and London. The headquarters of the GIB will be located in Edinburgh, with the GIB's main transaction team based in London. This arrangement will enable a greater commercial reach nationally than could be achieved from one location