SDCL Energy Efficiency Income Tst Investment in a Renewable Power Facility in the US (4361F)
July 16 2021 - 01:00AM
UK Regulatory
TIDMSEIT
RNS Number : 4361F
SDCL Energy Efficiency Income Tst
16 July 2021
16 July 2021
SDCL Energy Efficiency Income Trust plc
("SEEIT" or the "Company")
Investment in a Renewable Power Facility in the United
States
SEEIT is pleased to announce that it has agreed to invest
approximately $31 million in a large-scale green gas-to-grid
project in Indiana, US. The investment involves the acquisition of
an operating renewable power facility in Reynolds, and further
investment in the expansion of the facility to enable the project
to produce green gas. SEEIT's investment will be in the form of
senior and subordinated debt.
The anaerobic digestion ("AD") facility has been operating since
2012. It currently converts cattle manure and food waste into 6 MW
of renewable power and sells this power under an 8 year take-or-pay
fixed price Power Purchase Agreement ("PPA") to NIPSCO, an
investment grade public utility.
A portion of the investment will go towards increasing the
capacity of the existing AD facility as well as installing a
commercially proven gas upgrading facility to enable the project to
inject green gas into the gas grid ("RNG"), which is to be sold
under long-term offtake agreements. The existing plant will
continue to operate during the expansion, providing an underlying
cashflow until the expansion is completed in 2023.
The project is operated by Bio Town Ag, an experienced operator
in the sector with a successful track record in developing,
constructing and operating AD and RNG projects. The project is
owned by Bio Town Biogas and First Farmers Bank & Trust and
Opal Fuels (a Fortistar company) will be co-lenders in the
transaction.
The investment in the facility will increase the supply of green
gas within the gas grid, thus directly reducing greenhouse gas
emissions arising from the existing supply and consumption of
energy, in line with the Company's strategy and investment policy.
The operational and planned investment in the facility will
continue to help deliver cheaper, cleaner and more reliable energy
solutions to the end user.
The investment supports SEEIT's total returns target as well as
its progressive dividend policy.
The acquisition will be funded from the Company's revolving
credit facilities.
Commenting on the acquisition, Jonathan Maxwell, CEO of
Sustainable Development Capital LLP, said: "We are very pleased to
have added a green gas production facility in the US to our
portfolio. This is a market that we have been watching closely for
some time and this acquisition will further diversify SEEIT's
portfolio by technology, counterparty, and project stage; as well
as supporting SEEIT's dividend policy. We look forward to the
opportunity to expand the facility and increase the supply of green
gas within the gas grid, helping to reduce greenhouse gas emissions
and enhancing returns for our shareholders."
For Further Information
Sustainable Development Capital T: +44 (0) 20 7287 7700
LLP
Jonathan Maxwell
Purvi Sapre
Keith Driver
Jefferies International Limited T: +44 (0) 20 7029 8000
Tom Yeadon
Gaudi le Roux
TB Cardew T: +44 (0) 20 7930 0777
Ed Orlebar M: +44 (0) 7738 724 630
Joe McGregor E: SEEIT@tbcardew.com
About SEEIT
SDCL Energy Efficiency Income Trust plc is the first UK listed
company of its kind to invest exclusively in the energy efficiency
sector. Its projects are primarily located in the UK, Europe and
North America and include, inter alia, a portfolio of cogeneration
assets in Spain, a portfolio of commercial and industrial solar and
storage projects in the United States, a regulated gas distribution
network in Sweden and a district energy system providing essential
and efficient utility services on one of the largest business parks
in the United States.
The Company aims to deliver shareholders value through its
investment in a diversified portfolio of energy efficiency projects
which are driven by the opportunity to deliver lower cost, cleaner
and more reliable energy solutions to end users of energy.
The Company is targeting an attractive total return for
shareholders of 7-8 per cent. per annum (net of fees and expenses
and by reference to the initial issue price of GBP1.00 per Ordinary
Share), with a stable dividend income, capital preservation and the
opportunity for capital growth. The Company is targeting a dividend
of 5.62p per share in respect of the financial year to 31 March
2022. SEEIT's last published NAV was 102.5p per share as at 31
March 2021.
Past performance cannot be relied on as a guide to future
performance.
Further information can be found on the Company's website at
www.seeitplc.com .
Investment Manager
SEEIT's investment manager is Sustainable Development Capital
LLP ("SDCL"), an investment firm established in 2007, with a proven
track record of investment in energy efficiency and decentralised
generation projects in the UK, Continental Europe, North America
and Asia.
SDCL is headquartered in London and also operates worldwide from
offices in New York, Dublin, Madrid, Hong Kong and Singapore. SDCL
is authorised and regulated in the UK by the Financial Conduct
Authority.
Further information can be found on at www.sdclgroup.com .
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