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RPMI Railpen and Greencoat Capital partner on UK energy plant acquisition

UK energy plant

RPMI Railpen, the £30bn UK railways pension Scheme, has partnered with Greencoat Capital to invest in UK renewable energy plant

The £30bn UK railways pension Scheme, RPMI Railpen, has partnered with Greencoat Capital to invest in a UK renewable energy plant.

Greencoat said it has bought the 39MW Sleaford Renewable Energy Plant in Lincolnshire from Glennmont Partners for an undisclosed amount.

The investment was funded by Railpen and the Greencoat Renewable Income, which is backed by local government pension schemes.

Sleaford is an operational combined heat and power plant, which uses a blend of straw and sustainable woodchip to generate renewable power and heat. Greencoat will operate Sleaford.

Greencoat said the acquisition is the fourth investment of the recently launched Greencoat Renewable Income fund.

The acquisition represents Railpen’s first investment partnership with Greencoat.

The acquisition diversifies Railpen’s Long-Term Income Fund’s holdings in a portfolio focused on asset-backed investments in real estate and infrastructure. The fund’s renewables assets have been concentrated in the wind and solar investments till now.

Minal Patel, partner at Greencoat Capital, said: Sleaford is a high-quality asset that will deliver predictable cashflows and significant inflation protection over the long term, helping our clients meet their liabilities.

Minal said, it also plays an important role in the area, supplying sustainable heat to local community facilities and providing arable farmers with a reliable offtake for their excess straw.

Lewis Vanstone, deputy portfolio manager of Railpen’s Long-Term Income Fund, said: The project is an ideal match for the Long-Term Income Fund’s continued focus on investing in a diversified portfolio with sustainable, long-dated and asset-backed income characteristics, particularly in the current environment.

We hope to continue playing an active role in the UK’s transition to a low carbon economy while securing stable cash flows for our members, Lewis said.


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