Scirocco Energy has completed its £1.2 million (€1.4 million) investment in Energy Acquisitions Group (EAG), a specialist acquisition and operating vehicle in the sustainable energy sector.
By creating a joint venture (JV) platform alongside EAG, Scirocco Energy will leverage EAG’s strong network and experience to gain access to a pipeline of already identified acquisition opportunities within the anaerobic digestion (AD) and biogas market.
EAG will use the funds to acquire 100% of Greenan Generation (GGL) and its 0.5 MWe AD plant in Northern Ireland.
“I am delighted to announce the completion of this transaction today, marking an important milestone in Scirocco Energy’s new strategy to target assets within the European sustainable energy sector,” said Tom Reynolds, CEO at Scirocco Energy.
“The initial investment provides an entry point into the rapidly growing UK biogas market, and provides a platform that will allow us to capitalise on the significant pipeline of opportunities in this sector in collaboration with the highly experienced and well-networked EAG team.
“While the initial acquisition of GGL – which is expected to complete very soon – is relatively small in size, it is strategically important in terms of delivering immediate cash flow which can be re-invested into a compelling pipeline of complementary opportunities alongside our new partner.
“We also believe that the addition of activities, which benefit the UK’s net-zero target, will make Scirocco’s investment proposition more attractive for investors, due to the growing importance of ESG considerations, and will ultimately lead to a re-rating of the company over time.”
Chris Kerr, EAG’s managing director, said the firm is “thrilled” to complete the establishment of the JV with Scirocco Energy.
“Our extensive experience and understanding of the AD market, and pipeline of near-term opportunities uniquely position this JV to take advantage of the growing biogas market and contribute positively to the decarbonisation of challenging sectors in industry such as heating, transport and agriculture, where demand is growing strongly,” said Kerr.
“Our initial acquisition of GGL provides the template of the opportunities we will be targeting given its proven operational status and material scope to enhance free cash flow and EBITDA margins through plant optimisation techniques.”