Abrdn Global Sustainable Infrastructure Partners IV LP (aGSIP) and The Circular Economy Development Ltd (TCED) have reached financial close on an anaerobic digestion plant.
It is an initiative which seeks to remove landfill waste and produce renewable energy while removing CO2 emissions from the conversion process.
The project is set to convert 120,000 tons of food waste annually into gas.
“The project is located in Deeside on the England-Wales border, on a well-connected industrial park with 40km south of Liverpool,” said Abrdn.
“The project will include designing, building, owning, operating, maintaining and financing a state-of-the-art anaerobic digestion facility which will produce biogas from food waste through widely used and well tested anaerobic digestion technologies.
“The total cost of the project exceeds £60 million, with construction commencing in Q3 2024 and commercial operations planned to begin in late 2026.
“When online, the project is set to convert approximately 120,000 tons of food waste annually into gas. Utilising a gas upgrader around 180 MWh, biomethane will be extracted and injected into the grid while purified CO2 will be separated and liquified ahead of its sale.
“A portion of this biomethane will be utilised to generate approximately 5MW of green electricity via a combined heat and power unit.”
Olivier Rossi, Director, Abrdn, said: “This is a sector that we know well, with strong long-term fundamentals that also supports the energy transition and helps our investors achieve their goals. We are excited to be able to develop an exceptional asset with such a strong environmental focus.
“Abrdn’s Concession Infrastructure business, a long-term investor in infrastructure projects across the globe, is committed in supporting investments that focus on sustainability and mitigating the effects of climate change.”
The project has been invested in from aGSIP IV, Abrdn Concession Infrastructure’s fourteenth infrastructure fund to be raised and the fourth in Abrdn’s global infrastructure fund series.
The Abrdn Concession Infrastructure team manage a portfolio of infrastructure assets in Europe, the Americas and Australia. Abrdn Concession Infrastructure employs more than 30 investment professionals in eight offices around the world and has been operating for more than 20 years.
The Deeside project is a key milestone for TCED, a company whose selling proposition is decarbonising high-energy users by developing a fleet of carbon-negative renewable energy plants. By converting food waste into renewable energy and green fertiliser, the new facility will play a crucial role in reducing emissions and supporting the UK’s transition to a circular economy.
TCED CEO Mac Andrade said: “The Deeside project exemplifies our commitment to building a sustainable future by developing carbon-negative facilities that not only generate renewable energy but also contribute to reducing CO2 emissions.
“This project represents a crucial step in our mission to decarbonise high-energy users, and we look forward to seeing the positive environmental and economic impacts it will create.”