Scirocco Energy (SCIR), the AIM investing company targeting attractive assets within the European sustainable energy and circular economy markets is delighted to announce, further to its 25 August 2021 RNS, the completion of the acquisition of Greenan Generation Limited (GGL) and its 0.5MWe Anaerobic Digestion (AD) plant in Northern Ireland by Energy Acquisition Group Ltd (EAG).
This marks the first acquisition under the joint venture with EAG that was announced last month, whereby Scirocco holds a 50% interest in the EAG joint venture (the "JV").
Highlights
- Scirocco Energy platform company EAG has acquired 100% of Greenan Generation Limited (GGL) and its 0.5MWe Anaerobic Digestion (AD) plant in Northern Ireland
- GGL is a cash generative, operational AD plant which can be optimised to enhance EBITDA margins and free cash flow
- The anticipated gross initial annual turnover from GGL is c. £1.1m
- This aligns with the new strategy, approved by Scirocco Energy's shareholders on 9 July 2021, to deliver value through acquisitions in the European sustainable energy and circular economy markets
Tom Reynolds, CEO at Scirocco Energy, comments: " I am delighted to announce the completion of this acquisition today, marking important progress in Scirocco Energy's new strategy to target assets within the European sustainable energy sector.
GGL has been the subject of rigorous DD by the JV which confirms that this is a robust first asset that will deliver immediate cash-flows and provides clear opportunities for optimisation that will further enhance the value of this acquisition.
Most importantly, it provides the blueprint for future acquisitions within EAG's pipeline of opportunities. We see the AD and biogas sector as an attractive market landscape within Scirocco's "Energy" investment channel and are delighted to be able to access the unique expertise and network afforded by EAG.
We're also pleased to be growing the portfolio with assets that support the UK's net zero targets which will be at the heart of everything we do going forward."
Chris Kerr, Managing Director, EAG added: " We are excited to complete the first transaction since the establishment of our JV with Scirocco, highlighting the complementary strengths of both firms. The partnership is well positioned to take advantage of the growing UK biogas market and this initial acquisition can serve as the template for other opportunities that we are screening, given its proven operational status and clear scope to enhance free cash flow and EBITDA margins through a programme of plant optimisation techniques."
