Surrey’s Future Biogas snaps up six anaerobic digestion facilities

Future Biogas, one of the UK’s largest anaerobic digestion (AD) plant developers and biogas producers, has agreed to acquire a 51 per cent stake in a portfolio of six AD facilities.

The sites were purchased from JLEN Environmental Assets Group for a total of £68.1 million and offer a combined gas output of 333GWh.

3i Infrastructure, an investor in Surrey-based Future Biogas, will fund £30 million of the transaction.

Since 3i’s initial investment in 2023, Future Biogas has 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 on a site at Gonerby Moor in Lincolnshire as part of a 15-year green gas offtake agreement with Covid vaccine makers AstraZeneca.

Philipp Lukas, CEO of Future Biogas, said: “We’re very pleased to be acquiring a stake in this portfolio of anaerobic digestion plants from JLEN, who we’ll continue to work with constructively.

“We know the assets well, having developed them and managed them for an average of eight years.

“The transaction is a key step in building a scalable AD platform under Future Biogas, enabling us to upgrade the plant portfolio and extend their lives beyond the current Renewable Heat Incentive subsidy.

“Critically, it provides a means to continue to deliver under our Project Carbon Harvest mission to generate and supply green gas, helping decarbonise UK farms and industry.”

Scott Moseley and Bernardo Sottomayor, managing partners and co-heads of European infrastructure at 3i Investments, added: “It’s increasingly clear that biogas will play an important role within the UK’s energy transition.

“This acquisition represents an important milestone, clearly establishing Future Biogas as the leading independent owner and developer of AD plants in the UK.”

Colleagues at Osborne Clarke’s Bristol office advised JLEN on the deal, with the corporate team led by partner Chris Yeo and senior associate Hannah Stevens.

They were supported by partners Erika Jupe and Tracey Wright and senior associate Helena Zaba on tax, while partner Duncan Parker and trainee Madeleine Begg advised on construction elements.