Investment Management Corp of Ontario (IMCO) has invested in Bioenergy Infrastructure Group (BIG), a British developer and operator of biomass and waste-to-energy plants.
Terms weren’t disclosed. IMCO acquired its stake by co-investing with U.K. infrastructure investment firm Infracapital.
BIG was established in 2015 by Infracapital, Aurium Capital Markets, Helios Energy Investments and Foresight Group.
This week, the company raised an additional £150 million ($258 million) in financing from Infracapital, Aurium and Helios.
Launched in 2017, Toronto-based IMCO oversees $60 billion in assets on behalf of Ontario public-sector institutional investors.
IMCO Acquires Interest in UK-based Bioenergy Infrastructure Group
October 9, 2018 – Investment in waste-to-energy sector leader aligns with approach of developing greenfield assets with experienced partners.
TORONTO (October 9, 2018) – The Investment Management Corporation of Ontario (IMCO) announced today that it has invested in Bioenergy Infrastructure Group (BIG), a UK-based firm that focuses on extracting energy from waste (EfW) through an aggregated platform. IMCO acquired its interest through a co-investment with Infracapital, a UK-based infrastructure investor. Infracapital, together with its investors, will hold majority control of BIG.
EfW involves the treatment of waste that is processed into final products (i.e. energy, biogas, scrap metal, etc.) for either reuse, or as products which can then be landfilled. Following the various forms of treatment, the residual material can then be re-used or sold. BIG was established in 2015 with a view of creating a dedicated portfolio of EfW assets, targeting a generation capacity of more than 200MW.
“This is an exciting opportunity for IMCO in an industry that is creating innovative solutions for renewable energy,” said Jean Michel, Chief Investment Officer of IMCO. “This investment aligns with our strategy to seek infrastructure opportunities with experienced, greenfield investors, while providing our clients with long-term, stable revenue generation.”
Over the past decade, the UK government has set priorities to promote reuse and recycling as landfills there near capacity. BIG’s EfW facilities are well positioned to benefit from this waste treatment capacity gap and are strategically located across the country to meet the demand.
BIG benefits from renewable energy incentives put in place by the government. The legacy Renewable Obligation scheme provides support for electricity generated from renewable sources and BIG receives renewable obligation certificates (ROCs), which energy suppliers can then purchase from BIG (equivalent to the amount of energy supplied). The firm also derives revenue from energy generation purchase agreements and gate fees, associated with its facilities that process refuse-derived fuels, and other ancillary sources.
IMCO (Investment Management Corporation of Ontario) manages over CAD$60 billion on behalf of its clients. IMCO’s mandate is to provide broader public-sector institutions with investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. IMCO is an independent organization, operating at arm’s length from government and guided by a highly experienced and professional Board of Directors. For more information, visit www.imcoinvest.com and follow us on Twitter @IMCOinvest.
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