A Palisade Real Assets-managed UK bioenergy fund has secured an investment from APG Asset Management and expanded its operations through the acquisitions of Aggregator Platform (ADAP) and Material Change Limited (MCL).

IPE Real Assets understands that APG, the asset management arm of Netherlands’ largest pension fund ABP, has committed around £200m (€236.5m) to Palisade’s BioticNRG.

Palisade, which declined to disclose the amount APG committed, said in a press release that the “significant mandate bolsters BioticNRG’s ability to build value, create a highly sustainable bioenergy platform and deploy its decarbonisation credentials across hard to access sectors such as transport, waste, energy and agriculture”.

Stephen Burns, CEO of Palisade Real Assets, said: “We are thrilled to have closed the APG mandate and signed these milestone transactions which bring together infrastructure asset ownership and strong operational capability within the same organisation.”

Iulia Grosu a senior infrastructure portfolio manager at APG, said: “Investing in biogas and biomethane offers a promising solution to mitigate climate change, reduce waste, and provide renewable energy solutions while contributing to carbon negative practices.

“We have been working with the Palisade Real Assets team to establish BioticNRG and ensure it fits ABP’s commitment to the energy transition, while securing attractive returns for its participants.

“Their subsequent acquisition of ADAP and MCL brings the expertise and commitment which will underpin our long-term vision for sustainability.”

Palisade has invested undisclosed sums to acquire fellow bioenergy platform ADAP and anaerobic digestion (AD) and composting firm MCL, in deals it said expand BioticNRG’s existing footprint in the organics and bioenergy sector in the UK. 

Palisade’s BioticNRG platform

Source: Palisade Real Assets

ADAP, located in the east of the UK, consists of six operating AD plants and a composting business. The assets comprise four gas-to-grid AD plants and two combined heat and power plants. MCL, which has been operating since 2003, currently manages five of the ADAP AD plants and the ADAP composting business. 

Ed Bastow, CEO of Material Change, said: “We have exciting times ahead with a pipeline of opportunities and the support of our new partners which will allow us to innovate and optimise for long term growth.”

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