Macquarie Green Investment Group Continues Allocation to Europe

Posted on 09/19/2021

Macquarie’s Green Investment Group Continues purchased Fuinneamh Sceirde Teoranta, the developer of the Sceirde Rocks offshore wind farm, in Galway, Ireland. Sceirde Rocks is a proposed 400 MW offshore wind farm, capable of generating enough energy to power the equivalent of up to 295,000 homes. Ireland has an objective of achieving 70% renewable energy by 2030. Macquarie has been operating in Ireland for 17 years. Macquarie helped finance the development of Technical University Dublin, the Dublin Waste to Energy project, 10 national schools and other social projects. Macquarie is also a major investor in Irish SME’s.

In June 15, 2021, Green Investment Group acquired a portfolio of development-stage utility-scale, distribution-connected battery storage projects in the U.K. from Capbal Limited (Capbal). GIG and Capbal will partner to deliver an initial 187 MWh of late-stage development projects, and grow the portfolio through the acquisition and development of additional projects.

Moving away from nuclear power, Germany is the fifth largest biomass market in the world. In early March, Green Investment Group, Wismar Pellets and PEARL Infrastructure Capital (PEARL) reached financial close on the Bioenergie Wismar Combined Heat and Power Plant (Bioenergie Wismar) in northern Germany. Located at the Port of Wismar, it is GIG’s first bioenergy project in continental Europe. Co-developed by GIG and Wismar Pellets, the combined heat and power (CHP) biomass plant will generate up to 18 MWe of electricity and 27 MWth of renewable heat. The project’s fuel supply is anchored by Wismar Pellets and ILIM Nordic Timbers, who will provide bark material as a by-product of their timber operations. Wismar Pellets and ILIM will also contract for the project’s steam output and utilize the heat at their neighboring facilities for timber drying. The project successfully secured an EEG Feed-in-Tariff for its electricity output in November 2020. For construction funding, GIG linked up with PEARL, a specialized infrastructure investor, who as majority shareholder agreed to take part in the project into construction with Wismar Pellets. Macquarie Capital is the project’s sole financial advisor. Macquarie Capital raised a long-term project finance debt facility to support construction which was provided by Landesbank Baden-Wuerttemberg (LBBW). Commercial operations are anticipated to commence in the fourth quarter 2022. Green Investment Group supported the biomass combined heat and power sector since 2012, with one of its first investments being into the Craigellachie CHP plant in Scotland, which provides heat and power to the local Macallan distillery. PEARL Infrastructure Capital relies on the Edmond de Rothschild Private Equity platform. The fund also has the support of several strategic anchor investors, including the European Investment Bank (EIB) and the Caisse des Dépôts et Consignations (CDC).

UK Climate Investments
Revealed on August 18, 2021, UK Climate Investments made a cornerstone commitment of ZAR 500 million (roughly £25 million) to help establish Africa’s first dedicated renewable energy yieldco, managed by majority black-owned fund manager Revego Fund Managers. The initial portfolio will contain stakes in six projects located across South Africa, with a combined installed capacity of 605 MW. Revego intends to continue to grow its portfolio through the acquisition of new assets across the region. UK Climate Investments is a joint venture between Macquarie’s Green Investment Group (GIG) and the UK Government’s Department for Business, Energy and Industrial Strategy (BEIS), which invests UK International Climate Finance to help the world’s developing economies tackle climate change and promote clean, resilient and inclusive growth. UK Climate Investment has committed approximately £70 million of UK International Climate Finance over three years to support the development of clean energy and green finance markets in sub-Saharan Africa.

On July 27, 2021, UK Climate Investments committed £30 million (Ksh 4.4 billion) into a new 10-year locally managed fund which at full size will deliver approximately 10,000 new green, affordable homes for low-income families in Kenya. FSD Africa Investments (FSDAi), the investment arm of the UK Government’s flagship financial sector development agency in Africa, has committed £5 million (Ksh 740 million) as well. The Fund is targeting the delivery of approximately 10,000 homes using modern green technologies. The housing units will provide affordable ownership and rental opportunities with 100% ownership at an average cost of £30,500.

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