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Greencoat acquires Margam Green Energy

Friday, April 29th, 2022

Greencoat Capital is pleased to announce that funds managed by Greencoat have agreed to acquire 100% of Margam Green Energy Plant (“MGEP”), from Glennmont Partners..

MGEP has been operational since May 2019 and is one of the largest biomass plants in the UK, with a processing capacity of c.290 thousand tonnes per annum (ktpa) of waste wood. The plant’s net capacity of 41.8MW is sufficient to offset around 150,000 tonnes of CO2 per year.

The acquisition is Greencoat’s third investment in large-scale bioenergy plants, following the acquisition of Templeborough Biomass Power Plant in 2019 and Sleaford Renewable Energy Plant in 2020.

The UK supply of low-quality waste wood is forecast to increase in line with economic growth and construction and demolition activity, with MGEP placed to benefit from these trends. The only other viable alternatives for these grades of wood aside from biomass are landfill or export, meaning that MGEP converts what would otherwise be waste into power.

In line with Greencoat Capital’s broader investment strategy, its bioenergy assets provide stable, inflation-linked returns which have low correlation to the wider economy, and which are well insulated from global natural resource supply issues.

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