ENERGY Acquisitions Group (EAG), a joint-venture partner of London-listed Scirocco Energy, has completed the purchase of a major anaerobic digestion plant in Derry.
It made the acquisition from Greenan Generation Ltd, which is based on the Carnmoney Road near Eglinton.
The 0.5MWe AD plant has an anticipated gross annual turnover of around £1.1 million.
Tom Reynolds, chief executive at Scirocco Energy, said: "This marks an important progress in our new strategy to target assets within the European sustainable energy sector.
"Greenan 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."
Anaerobic digestion is a process that creates biogas, a renewable energy source that will help the UK deliver on its decarbonisation commitments.
EAG is a UK incorporated private company focused on creating a portfolio of anaerobic digestion plants which meet a well-defined set of operational and financial criteria.
It was created by Chris Kerr, an engineer specialising in renewable energy, synthetic and biogas sectors with over 20 years’ experience.
He said: “Acquiring Greenan Generation Limited is an extremely positive development and represents a robust asset within our portfolio.
“The partnership of EAG and Scirocco Energy is well positioned to take advantage of the growing UK biogas market and this initial acquisition can serve as the template for other opportunities.”
Belfast law firm Millar McCall Wylie acted for EAG in advising and managing all legal aspects of the acquisition.
Director Scott Kennedy, who led the team at Millar McCall Wylie advisingon the acquisition: “We're very proud to act for EAG in this significant transaction, which will undoubtedly be one of many similar long-term investments that will shape the growth of the company within the renewables sector.”
