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Pinsent Masons advises on renewable energy plant acquisition

Pinsent Masons’ Leeds office has advised Greencoat Capital LLP (“Greencoat”) on the acquisition of Sleaford Renewable Energy Plant in Lincolnshire from Glennmont Partners.

The investment was made with funds from RPMI Railpen, the investment manager for the £30bn Railways Pension Scheme, and Greencoat Renewable Income LP, the diversified fund, with commitments from UK Corporate and Local Government Pension Schemes.

Located within the ‘Grain Belt’, in Lincolnshire, the plant provides a reliable route to market for straw, an agricultural by-product which can represent an additional income source for local farmers. Heat generation by the plant is provided to the local swimming pool and other community facilities and the plant has recently signed a new community funding agreement with the council.

Sleaford is the second biomass plant acquired and operated by Greencoat following the acquisition of the Templeborough Biomass Power Plant in November 2019 continuing Greencoat’s advance into the bioenergy sector. This is the fourth investment of Greencoat’s recently launched diversified private markets fund, Greencoat Renewable Income LP. The acquisition reflects the appetite of UK pension schemes seeking predictable, secure income cash flows for renewable infrastructure assets.

Minal Patel, Partner at Greencoat Capital, said:

“Sleaford is a high-quality asset that will deliver predictable cashflows and significant inflation protection over the long term, helping our clients meet their liabilities. It also plays an important role in the area, supplying sustainable heat to local community facilities and providing arable farmers with a reliable offtake for their excess straw. We look forward to assuming stewardship of the plant as part of our strategy to build our portfolio of diversified renewable energy investments.”

Andrew Kerr, Corporate Partner at Pinsent Masons added:

“We were pleased to utilise our deep sector experience alongside our corporate capability in delivering deals. We were delighted to work closely with the Greencoat team again and look forward to assisting on further transactions with them in the near future.”

The deal was led by Partners Andrew Kerr and John Bruce with support from Senior Associate Andrew Senior and Associate Ben Proctor, together with the firm’s Tax, Banking, Corporate and Property teams. This transaction marks the second renewable infrastructure acquisition that Pinsent Masons have advised Greencoat on, with the acquisition of Templeborough biomass plant completing late last year.