Octopus Renewables buys two UK biomass power plants

By Dominic Ellis
Octopus Renewables buys Brigg and Snetterton plants which are fuelled by a mixture of locally sourced biomass feedstocks

Octopus Renewables, the specialist clean energy investor arm of Octopus Group, has bought two operational UK biomass power plants for an undisclosed fee from a joint venture by Copenhagen Infrastructure Partners and Burmeister & Wain Scandinavian Contractor, in one of the largest deals of its kind in the UK.

The plants, located in Brigg, North Lincolnshire and Snetterton, East Anglia, have been acquired with investment provided by funds managed by Octopus, one of which includes a recently announced fund cornerstoned by UK workplace pension provider Nest. 

Both Brigg (40.8MW) and Snetterton (44.9MW) are fuelled by a mixture of locally sourced biomass feedstocks. Octopus will manage both sites, adding to the five biomass plants that it currently manages across the UK.

Octopus Renewables is the largest investor of utility scale solar power in Europe, as well as a leading investor in onshore wind and biomass, managing a global portfolio valued at more than £3 billion.

Peter Dias, Investment Director at Octopus Renewables, said it views biomass as playing a crucial role in diversifying the UK's energy mix and supporting the country's farming industry through the sourcing of feedstock fuels.

“The acquisition marks a significant step for our fund that has Nest as a cornerstone investor. The fund benefits from a healthy pipeline that will help target strong and stable returns. We see institutions and pension funds as playing a vital role in hastening the energy transition and helping to unleash pent up capital to fight climate change," he said.

Stephen O’Neill, Head of Private Markets at Nest, said biomass is an exciting technology and energy crops, such as miscanthus, could play a significant role in the UK hitting its carbon emission targets. "We want to continue investing in the energy of the future and looking ahead for what opportunities will be presented in the drive to the low-carbon economy," he said.

Rothschild & Co acted as the financial advisor and Herbert Smith Freehills as the legal advisor to Copenhagen Infrastructure Partners on the sale of the assets, while Burgess Salmon was the legal advisor for Octopus on the deal, and EY provided tax structuring advice.

Octopus Energy supplies over 2 million households across the UK. In March, it announced its intention to acquire sister company Octopus Renewables, in a move designed to help deliver a cheaper, faster energy transition through technology.

Share

Featured Articles

ABB scoops global energy automation technology award

ABB excels in innovating subsea systems and electrification services and providing underwater control solutions according to Frost & Sullivan

INEOS Köln awarded €770,000 for green hydrogen study

State funding will support feasibility study for the construction of 100MW water electrolysis plant for green hydrogen at the INEOS site in Köln

UK receives £2.7bn upfront funding to boost grid capacity

Ofgem's proposed package totals £20.9bn as part of its five-year vision to build reliable and clean energy

Poland and Germany best placed for gas-to-coal switch

Oil & Gas

Leclanché fire retardant additive cuts battery fire risk

Renewable Energy

DP World receives first all-electric terminal tractor

Sustainability