Octopus Investments completes $227mn refinancing for biomass and landfill gas

By Olivia Minnock
Octopus Investments has completed a refinancing round worth $226.7mn (£174mn) for its 172MW biomass and landfill gas portfolio in...

Octopus Investments has completed a refinancing round worth $226.7mn (£174mn) for its 172MW biomass and landfill gas portfolio in the UK.

The portfolio, called the Melton Renewable Energy UK Portfolio, was acquired by Octopus in 2015 and include five biomass sites as well as 22 landfill gas sites, which produce a mix of gases from microorganisms to be used as fuel. In total, Octopus’ total clean energy portfolio is worth $2.6bn.

Funding has come from major UK financial institutions including NatWest, HSBC, Allied Irish Banks (AIB), Investec, Barclays and Banco de Sabadell.

See also:

Africa’s first waste-to-energy plant constructed in Ethiopia

Green gas could power 15mn homes by 2050

Read the latest issue of Energy Digital

According to Energy Live News, Octopus’ Head of Energy Investments, Matt Setchell, said: “Following our record breaking solar refinancing last year, once again the Octopus team has delivered another significant transaction with this funding package for the biomass and landfill portfolio that we manage.”

He added, as reported by Utility Week: “As the UK’s largest non-utility investor in onshore renewables, we continue to set the benchmark high for negotiating market leading debt financings with innovative features such as a flexible fuel procurement and usage of short term PPAs (power purchase agreements) to drive value.

“More widely, this is a boost to the UK biomass industry, which plays an essential role in extracting maximum value from the organic waste streams and diversifying our energy mix. The involvement of major blue-chip lenders in the deal further highlights the confidence in the future of biomass in the country.”

Share

Featured Articles

Shell invests in Qatar LNG North Field East project

Shell buys 25% stake in Qatar LNG North Field East expansion project which will have capacity of 32mn tonnes a year

Gas-led recession a 'near certainty' in Europe

Centre for Economics and Business Research estimates the risk of a recession in Europe this winter at approximately 40%

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

Renewable Energy

UK receives £2.7bn upfront funding to boost grid capacity

Utilities

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

Oil & Gas