Global law firm Ashurst has advised a consortium involving Aberdeen Standard Global Infrastructure GPII Limited (Abrdn) and The Circular Economy Developments (TCED) on a greenfield anaerobic digestion plant project, in what is the first project-financed anaerobic digestion project carried out in the UK.
The project, located in Deeside on the England-Wales border, includes the construction, operation and financing of an AD plant which will produce biomethane from food waste through the widely used and well tested anaerobic digestion technology.
The Deeside project is a key milestone for TCED, a company whose unique selling proposition is decarbonising high-energy users by developing a fleet of carbon-negative renewable energy plants. By converting food waste into renewable energy and green fertiliser, this facility will play a crucial role in reducing emissions and supporting the UK's transition to a circular economy.
The Ashurst team was led by partners Cameron Smith and Patrick Boyle and supported by members of Ashurst's Projects and Energy Transition Team, including Karen Braakman, Tom Penton, Nick Hilder, Emma Jamieson, Jonny Logan Ross Britain, Catherine Lathom-Sharp and Caroline Reid.
Commenting, partner Cameron Smith said: "This deal demonstrates for the first time in the UK that anaerobic digestion can be a bankable technology, provided that the project is of sufficient scale and the project is structured with robust and bankable documents and counterparties. Ashurst's extensive experience in the anaerobic digestion sector and biogas projects allowed us to navigate the numerous challenges by leveraging insights from previous biogas deals."
Patrick Boyle added: "We are delighted to be advising on this milestone transaction. It is a project that boasts robust long-term efficiencies while also facilitating the energy transition goals of the key strategic partners that will take on both biomethane and power produced by the Project on the basis of long term offtake agreements."
