Capital Dynamics acquires Australian biomass power plants

By Capital Dynamics | November 12, 2013

Capital Dynamics, as the private asset manager for a leading U.K. pension fund, has acquired a 68-megawatt (MW) portfolio of biomass power plants located in northern New South Wales, Australia. The portfolio includes two fully operational base-load power plants that co-generate renewable electricity and steam from local sugarcane waste and other biomass fuel sources.

The power and steam is sold under long-term contracts to sugar mills located adjacent to the power plants and also to the National Electricity Market.

Constructed and operational since 2008, the plants were at the time of construction the largest base-load renewable energy generators in Australia. The plants employ well-established combustion technology in widespread use throughout the industry, using well-proven Siemens steam turbines and Babcock boilers.

“This is a compelling investment which we have financed on an all-equity basis. Our investment breathes new life into the power plant operation and the future prospects for the local community in which they operate – especially to the local sugar cane growers who are so critical to the region’s economy,” said David Scaysbrook, managing director in the clean energy and infrastructure team at Capital Dynamics. “The plan is to own and operate these assets over the very long term, to improve them and to deliver to our investors strong financial returns from multiple revenue sources. This is a genuine, long-term partnership model.”

“The CEI team has decades of experience in successfully investing and operating thermal power plants as well as other renewables such as wind and solar,” said Stefan Ammann, CEO of Capital Dynamics. “This successful acquisition is another example of how their deep industry knowledge and experience can translate into significant revenue generation potential for our long-standing clients.”