3i-backed Infinis to acquire Alkane Energy

The infrastructure fund manager is backing Infinis’ acquisition of the independent power generator with a follow-on investment of £125m.

London-listed 3i Infrastructure is increasing its investment in Infinis with a £125 million infusion that will help fund the renewable energy company’s acquisition of Alkane Energy, an independent power generator from coal mine methane and reserve power operations.

“The merger of Alkane with Infinis will create a business with significant scale, offer operational improvement opportunities and the potential to further elevate Alkane’s generation performance and growth potential,” 3i said in a statement without providing further detail. A spokeswoman for the firm declined to comment.

The follow-on investment, which 3i Infrastructure is funding from its balance sheet, comes nearly 18 months after the firm acquired Infinis’ gas business for £185 million from Terra Firma. With installed capacity totaling 286MW across 121 sites in the UK, Infinis is the largest landfill gas generator in the UK.

For its part, Alkane – headquartered in Edwinstowe, Nottinghamshire – operates the largest portfolio of CMM sites in the country, extracting methane from mothballed coal mines and converting it into electricity. As at December 2017, Alkane had 160MW of installed generating capacity operating across 32 sites throughout the country.