Foresight, through the Foresight Italian Green Bond Fund, has invested €7.5 million to finance the construction of an anaerobic digestion (AD) plant in Sardinia, Italy.
Biogas Sardegna Green, the construction-ready AD plant, will have the capacity to process 30,000 tonnes of animal waste annually and generate 0.6 MW of combined heat and power.
The plant will produce 5,245 MWh of electricity annually, enough to supply over 1,900 homes and save 3,100 tonnes of CO2 emissions every year. It will also generate 6,132 MWh of thermal energy, which will be utilised during operations.
Foresight announced the arrangement and subscription of two project bonds totalling €11.35 million, of which €7.5 million was allocated to the AD plant. The remaining bond amount will be provided by the Sardinia Region Development Fund, a regional government organisation supporting the economic and social growth and development of Sardinia.
“We are delighted to have completed this investment in Biogas Sardegna Green,” said Diomidis Dorkofikis, partner of Foresight.
“This innovative AD project further diversifies the Italian Green Bond Fund portfolio, which now covers six different renewable energy and energy efficiency sectors. This transaction confirms our effort to financing and managing innovative green projects in Italy and demonstrates our ability to work collaboratively and bring together strong counterparties across the public and private sectors.”
The project has secured five-year feedstock supply agreements with seven contracted suppliers, with the option to extend for a further five years.
The primary bond sponsor is Anaergia, a well-established engineering, procurement and construction contractor with over 25 years of experience in the bioenergy sector. The facility will be operated by BS Green, wholly owned by Anaergia.