Scirocco Energy has completed the acquisition of Greenan Generation Limited (GGL) and its 0.5 MWe anaerobic digestion (AD) plant in Northern Ireland.
This marks the first acquisition under Scirocco’s joint venture (JV) with Energy Acquisition Group (EAG) that was announced in August, whereby Scirocco holds a 50% interest.
GGL is a cash generative, operational AD plant that can be optimised to enhance EBITDA margins and free cash flow. Its anticipated gross initial annual turnover is £1.1 million (€1.28 million).
“I am delighted to announce the completion of this acquisition today, marking important progress in Scirocco Energy’s new strategy to target assets within the European sustainable energy sector,” said Tom Reynolds, CEO at Scirocco.
“GGL has been the subject of rigorous due diligence by the JV which confirms that this is a robust first asset that will deliver immediate cash-flows and provides clear opportunities for optimisation that will further enhance the value of this acquisition.
“Most importantly, it provides the blueprint for future acquisitions within EAG’s pipeline of opportunities. We see the AD and biogas sector as an attractive market landscape within Scirocco’s energy investment channel and are delighted to be able to access the unique expertise and network afforded by EAG.
“We’re also pleased to be growing the portfolio with assets that support the UK’s net-zero targets which will be at the heart of everything we do going forward.”
Chris Kerr, managing director at EAG, commented: “We are excited to complete the first transaction since the establishment of our JV with Scirocco, highlighting the complementary strengths of both firms.
“The partnership is well-positioned to take advantage of the growing UK biogas market and this initial acquisition can serve as the template for other opportunities that we are screening, given its proven operational status and clear scope to enhance free cash flow and EBITDA margins through a programme of plant optimisation techniques.”