Gowling WLG's Energy team has advised the shareholders of Codford Biogas Limited ("CBL") on the sale of a 100% equity stake in the company to JLEN, the listed environmental infrastructure fund.
CBL holds the rights and operational assets that make up the Codford anaerobic digestion ("AD") plant, a 100,000 tonnes per annum food waste permitted plant based in Wiltshire, UK.
The Codford AD plant has been operational since 2014 and has a current electrical capacity of 3.8MWe, which is generated by processing up to 100,000 tonnes per annum of both liquid and solid food waste from the commercial and industrial sector. As a result of its electricity generation, the plant is able to supply up to 4,000 homes via the UK power grid.
Two of shareholders will be retained as consultants by JLEN to provide assistance on the expansion projects that JLEN will be developing and constructing within the next three years. The projects relate to battery storage, gas shipping and the supply of heat and electricity to a local business park.
Co-head of Gowling WLG's Energy sector, Gareth Baker, led the deal working with client relationship partner Nath Curtis, principal associate Sian Dewing (corporate), trainee Eleanor Craven (corporate) and other Energy team members including Stephen White (real estate), James Stanier (commercial & regulatory), Tom Rank (tax) and Ben Stansfield (planning and environmental), with support from Robert Currall (projects), Rebecca Jones (employment) and Naomi Sander (finance).
The selling shareholder said: "This is our 4th transaction with the Gowling team in under 12 months. Working with advisers that have a true understanding of the commercial and industry issues in the sector is crucial for us. We look forward to the ongoing relationship with JLEN and to supporting further developments at the plant."
Nath Curtis said: "It was a team effort to reach completion on this transaction, both internally and externally. We are grateful for the assistance of the various other advisers on both sides of the table and pleased to have aided our clients to meet their objectives."
Elgar Middleton acted as finance advisers to CBL.
Gowling WLG's multi-disciplinary energy team has a market-leading reputation and operates seamlessly around the globe. The deal is another example of the team's position in the energy sector and follows a series of recent mandates, including advising Eelpower on securing a multi-asset agreement with Swiss sustainable energy infrastructure fund manager SUSI Partners.
In the last few months, it has also advised Longspur Capital on its disposal of two operating onshore wind farms and a stake in 14 operating hydroelectric power stations, as well as Downing Renewables & Infrastructure Trust's £122 million IPO.