Overview

Future Biogas is one of the largest anaerobic digestion (AD) plant developers and biogas producers in the UK, operating 11 AD plants on behalf of institutional investors under long-term contracts.

Future Biogas’s plants convert a wide range of feedstocks into clean and renewable energy through AD which produces biogas. Biogas can either be used to generate green electricity, or upgraded into biomethane and injected into the UK’s national gas network. Future Biogas produces over 500GWh of biogas per year, enough energy for over 40,000 homes.

Biomethane from AD is a ready-to-use and commercially-viable solution for hard to decarbonise industrial sectors. It does not require any upgrade to the existing UK gas infrastructure. Energy produced by AD plants is carbon neutral, as the CO2 released during the process matches the CO2 absorbed from the atmosphere by the feedstock.

Future Biogas promotes a regenerative farming approach, sustainably integrating feedstock from energy crops into agricultural systems. The circular process of returning digestate back to land can help replenish soil nutrients and carbon and displaces demand for carbon intensive artificial fertilisers.

Investment rationale

• Future Biogas is the largest producer of biomethane in the nascent UK market and a highly experienced developer and operator of AD plants, with full-service capabilities in development, construction and operations.
• There is strong political support and growing corporate demand for domestically-produced biomethane, which, as a direct substitute for fossil natural gas, has an essential role to play in decarbonising some of the UK’s gas dependent sectors such as heat, transport and manufacturing.
• On a national scale, the use of biomethane (vs. natural gas) allows the existing gas infrastructure to help meet the UK Government’s Net Zero and energy security targets without any change to the existing system.
• Future Biogas will develop a new generation of unsubsidised AD plants and sell the resulting biomethane under long-term offtake agreements to corporate buyers.
• In the longer term, Future Biogas intends to enter the nascent but high potential voluntary carbon offset market through carbon capture and storage.
• Future Biogas has a highly experienced management team with a strong track record in the sector.