The response to the climate and environmental emergencies will be among the defining themes of our time. The transition to a more sustainable consumption model and the development of solutions to tackle global warming and climate change, either through regulatory ‘push’ or changes in consumer preferences, are going to provide attractive investment opportunities for many decades.
Generation of renewable energy
Energy production and use and transportation are currently responsible for the vast majority of EU greenhouse gas emissions. Renewable power generation remains one of the areas of focus for our Infrastructure business, as most countries across the world try to increase the proportion of renewables in their electricity generation mix.
Infinis is the leading UK generator of low carbon power from captured methane. Methane is a highly potent greenhouse gas, with a contribution to global warming over 20 times greater than that of carbon dioxide. Infinis’ operations in the year to March 2021 captured 300,000 tonnes of methane, preventing more than an equivalent of 6.5 million tonnes of carbon dioxide (CO2) escaping into the atmosphere.
The business operates from 148 geographically dispersed sites across the UK, located close to end-user demand and thereby avoiding both the electrical losses and associated charges from use of the national transmission network. By burning captured methane to generate power, Infinis provides an efficient, secure and non-intermittent source of power generation, which is highly complementary to other renewable sources such as solar and wind, which are intermittent in nature.
We have continued to support Infinis since first investing in 2016, funding further investment and a number of bolt-on acquisitions.
Valorem is a fully integrated, independent renewable energy operator which develops, owns and operates onshore wind farms, hydro projects as well as photovoltaic systems across Europe. Today the company is the fourth largest wind developer (and the largest independent) in France and has developed over 2.4GW of installed capacity across wind, solar and hydro. The business has built an impressive future pipeline of 4.9GW of wind, solar and hydroelectric projects across European geographies, of which 2.1GW is at an advanced development stage.
Since first investing in 2016, we have supported investments across Valorem’s portfolio, including the expansion in the solar and hydro markets.