Climate Change Capital Private Equity, a EUR200m fund dedicated to clean technology, is making a GBP6m investment in Renewable Zukunft, a Cambridgeshire-based generator of electricity from
Climate Change Capital Private Equity, a EUR200m fund dedicated to clean technology, is making a GBP6m investment in Renewable Zukunft, a Cambridgeshire-based generator of electricity from organic materials in the UK.
The capital will enable Renewable Zukunft to partner with farmers and other agro-food businesses to develop anaerobic digestion plants capable of producing and selling to the national grid 10 million megawatt-hours of electricity per year, capable of meeting the power needs of 2,000 homes. Climate Change Capital will take an undisclosed stake in the company and have a seat on the board.
Renewable Zukunft is using proprietary biogas technology developed in Austria where it has been in use in 12 plants. The firm’s business model is to enter into joint ventures with agricultural and food-processing businesses that provide the required feedstock for the biogas plants. The methane produced by the degradation of energy crops, manure and other organic waste materials is used to fuel combined heat and power generation units.
‘We are very pleased to have the opportunity to support Renewable Zukunft, which is addressing the high growth UK biogas market,’ says Climate Change Capital Private Equity partner Alex Betts. ‘They have a great value proposition for agricultural waste producers, a differentiated technology affording attractive returns on capital employed, and a highly experienced professional management team.’
Renewable Zukunft’s managing director, Tim Evans, said: ‘This investment underlines the strength of our business model and enables us to fund joint venture projects with third parties across the UK. The potential for biogas development in this country is substantial.
‘The biogas industry is at least 10 years behind the well-developed markets of Germany and Austria, and we are keen to raise awareness and acceptance of this technology. Such a system can be used by local authorities for waste management, by agricultural businesses, food processors and retailers as well as by communities looking for self-sufficiency.’
Climate Change Capital Group is an investment manager and advisor specialising in the opportunities created by the transition to the low-carbon economy. It develops and manages funds with EUR800m under management that invest in greenhouse gas reduction projects and their underlying assets, primarily in the developing world, and in companies that provide technologies or services facilitating greenhouse gas reductions.
The firm also manages the Ventus group of listed venture capital trusts and the Climate Change Capital Private Equity Fund, which have together more than EUR250m for investment in companies, projects and technologies that provide products or services facilitating climate change mitigation or adaptation. Climate Change Capital also provides financial, strategic and policy advice to energy-intensive industries, financial institutions, clean technology companies and governments.
