BioWatt is part of a joint venture that has acquired the Station Works AD Facility.
As part of it’s ongoing strategy of owning and operating biogas and biomethane production facilities in the UK, BioWatt has acquired 100% of the share capital in Katharos Organic Ltd – owner of the AD plant at Station Works, in Thaxted – the story was released this week and can be found here.
BioWatt has secured more than £25m of investment in the acquisition and construction of AD Facilities over the past 18 months and owns and operates 3 AD Facilities in the UK with plans to operate more than 10 plants by the end of 2018. As part of these plans, BioWatt has secured funding terms for a further £50m in order to commence construction on more than 1,100m3/hr of biomethane production capacity in quarter one of 2018.
BioWatt CEO and Founder, James Lloyd, commented that “the UK has been in a period of deep uncertainty, brought on by the inability of Government to bring forward the Renewable Heat Reforms that were eagerly anticipated for Spring 2017. Investment in existing plants, with known [whether good or bad] financial performance and already secured tariffs, represents an opportunity to ‘do business’ at a time when new developments ,predicated on the RHI, are slow to be funded.”
“However, despite this uncertainty, we expect to close funding on three new biomethane plants early in the New Year.”
Station Works AD was commissioned in 2013 as a crop fed electricity generation plant under the Feed-In-Tariff. The previous owner/ operator was the farmer/ landowner and as part of the deal, BioWatt has also acquired the Freehold for the site based on the long-term, robust counter-party covenant offered by the AD company. The Facility itself has operated on a sub-optimal basis during it’s previous ownership and the investment represents an opportunity to generate value for the new owners through increased efficiency, better maintenance, smarter operation and being part of a larger multi-site operator.
“We’re always on the look-out for new prospects, acquisitions and business opportunities associated with the production of biomethane and organics. Our team offers an excellent blend of finance and commercial acumen, with technical and development expertise – essential for this complex market place.”