BioWatt has been retained to provide commercial and technical advice by a UK Investor on their acquisition of x2 Biomethane/ Biogas (£25m) Anaerobic Digestion Biogas Facilities.

The UK has seen significant financial restructuring and consolidation (assets and operators) over recent months; with transactions such as Foresight’s acquisition of Material Change, Ancala of Biogen (and subsequently Tamar), Severn Trent of Agrivert’s AD Assets and Macquarie of Biocow – there is a growing tendency towards larger “platform-based” deals, with investors looking for a mix of operating and construction assets as well as into the devco/opco.  This particular project involved two agricultural AD assets with a combined value in excess of £25m.

BioWatt, as an independent Operator/ Developer, brings a wealth of completed biogas transaction (construction and acquisition finance), as well as hands-on operating and management, experience.  As a result, we have been engaged to provide a commercial and technical overview and then subsequently retained  for ongoing commercial support in negotiations.  Including BioWatt in negotiations allowed real time “fact checking” and negated the Seller argument that the Buyer lacked practical knowledge in their arguments.

The BioWatt team built an excellent rapport with both Buyer and Seller, facilitating productive discussions and cutting through to important issues for quick resolution.  Using our extensive in-house development experience and expertise, BioWatt have undertaken the following:

• • Review of planning and environmental permits/ permissions against current operations

  • Review of tariff arrangements, grid connection etc

  • Site visits and technical review of operations

  • High level review of operating, maintenance, asset management, environmental management and health and safety practices

  • Review of financial and technical performance

  • Financial modelling and future business plan – supporting purchase valuation

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