Foresight to invest in renewable energy through its green fund
Foresight Group, the infrastructure and private equity company, has launched its new fund that will focus on investing in the equities and bonds of renewable energy and infrastructure companies in the UK.
The dubbed FP Foresight UK Infrastructure Income Fund aims for an annual income of 5% per year, with dividends paid quarterly.
In comparison to the FTSE All Share, Foresight’s fund is targeting higher returns with lower volatility.
The minimum amount of money that can be invested is £1,000 (US$1350), or £100 ($135) per month for regular savings.
The company conducted a survey and found that 75% of advisers are confident regarding investment outlook for UK infrastructure assets.
According to the survey, 59% expect that demand will increase over the next five years from clients for exposure to the sector.
“The UK has seen unprecedented growth in renewable energy and infrastructure investment over the last five years that is expected to continue for the foreseeable future,” stated Foresight Group.
“Indeed, the forecast for the next eight years shows a 27% increase in cumulative UK renewable energy generation.”
Drax advances biomass strategy with Pinnacle acquisition
The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.
The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).
This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.
In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.
The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.