RPMI Railpen, the £30bn (€33.5bn) UK railways pension Scheme, has teamed up with Greencoat Capital to invest in a UK renewable energy plant.
Greencoat said it has bought the 39MW Sleaford Renewable Energy Plant in Lincolnshire from Glennmont Partners for an undisclosed sum.
The investment was made with funds from Railpen and the Greencoat Renewable Income, a fund backed by local government pension schemes.
Sleaford is an operational combined heat and power plant, which uses a blend of straw and sustainable woodchip to generate renewable power and heat.
Greencoat, which will operate Sleaford, said the acquisition is the fourth investment of the recently launched Greencoat Renewable Income fund.
The acquisition represents Railpen’s first investment partnership with Greencoat.
The acquisition diversifies Railpen’s Long-Term Income Fund’s holdings in a portfolio focused on asset-backed investments in real estate and infrastructure. To date, the fund’s renewables assets have been concentrated in wind and solar investments.
Minal Patel, partner at Greencoat Capital, said: “Sleaford is a high-quality asset that will deliver predictable cashflows and significant inflation protection over the long term, helping our clients meet their liabilities.
”It also plays an important role in the area, supplying sustainable heat to local community facilities and providing arable farmers with a reliable offtake for their excess straw.”
Lewis Vanstone, deputy portfolio manager of Railpen’s Long-Term Income Fund, said: “The project is an ideal match for the Long-Term Income Fund’s continued focus on investing in a diversified portfolio with sustainable, long-dated and asset-backed income characteristics, particularly in the current environment.
“We hope to continue playing an active role in the UK’s transition to a low carbon economy while securing stable cash flows for our members.”
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