Asset manager Greencoat Capital has acquired the Lincolnshire-based Sleaford Renewable Energy Plant with funds from RPMI Railpen and Greencoat Renewable Income and commitments from UK corporate and Local Government Pension Scheme funds.
The transaction, completed for an undisclosed sum, is the first between RPMI Railpen, manager for the £30bn Railways Pension Scheme, and Greencoat Capital - the UK's largest renewables sector-focused investor.
Greencoat Capital will operate the plant with involvement from in investors on strategic matters. The 29-megawatt-electrical renewable CHP plant uses straw and sustainable woodchip to generate renewable power and heat.
The deal diversifies RPM's long-term income fund holdings in a portfolio focused on asset-backed investments in real estate and infrastructure, the majority of which have so far been concentrated in wind and solar investment.
The fund's deputy portfolio manager, Lewis Vanstone, said: "The project is an ideal match for the 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 -arbon economy while securing stable cashflows for our members. We are delighted to be partnering with Greencoat Capital in the acquisition of Sleaford."
Greencoat Capital partner Minal Patel added: "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."
Sleaford is the second biomass plant acquired and operated by Greencoat and follows the October 2019 purchase of the Templeborough Biomass Power Plant from investment firm Copenhagen Infrastructure Partners.
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