3i Infrastructure has announced plans to invest an additional £125 million in Infinis so it can acquire Alkane Energy.
Infinis is the largest generator of electricity from landfill gas in the UK, in which 3i Infrastructure invested in December 2016. Alkane operates the largest portfolio of coal mine methane sites in the UK, capturing methane from mothballed and closed coal mines and converting it into electricity. As at December 2017, Alkane had 160MW of installed generating capacity operating across 32 sites across the UK.
3i said the merger “will create a business with significant scale, offer operational improvement opportunities and the potential to further elevate Alkane’s generation performance and growth potential”.
Richard Laing, chairman, 3i Infrastructure plc, commented: “We are pleased with today’s investment in Alkane. The investment offers an attractive return with a strong cash yield which will contribute to the Company’s dividend.”
Further reading:
How the future looked in 2015: interview with Erica Machiels