Aviva Investors has expanded its energy from waste portfolio with the acquisition of a UK biomass project.

The global asset management business of the insurer Aviva said it has bought the Hooton Bio Power facility, a 25MW greenfield project, for an undisclosed sum.

The Hooton Bio Power facility - which is located in Hooton, Cheshire - will be delivered by renewable energy developer CoGen and power facility specialist Burmeister & Wain Scandinavian Contractor (BWSC).

The facility is scheduled for completion in the second half of 2021.

Once operational, the Energy from Waste (EfW) gasification facility will generate enough electricity to power more than 40,000 homes annually in the UK.

Ian Berry, the head of infrastructure equity at Aviva Investors, said: “This deal positions Aviva Investors as one of the leading investors in EfW gasification in the UK. We are delighted to be working with BWSC and CoGen, both leaders in the field of renewable energy.

“The deal demonstrates our focus on originating innovative infrastructure equity deals to provide long-term investment opportunities for our clients.”

Allan Vlah, a director of infrastructure equity at Aviva Investors, said: “This project is an excellent example of our investment philosophy: working with market leaders in their respective fields, investing in a premier technology with a proven track record, and structuring contracts to deliver a project designed from the ground up to produce the long-term, inflation-indexed cash flows valued by our investors.

“We believe this transaction will create a positive legacy for the local community; converting waste into a resource that can offset the use of other fossil fuels and provide cost-effective, renewable power for local businesses.”

Infrastructure accounts for around £7bn (€6.14bn) of Aviva Investors’ £37bn reals assets platform. The Hooton Bio Power transaction is the manager’s fourth equity investment in biomass/EfW.