(Alliance News) - SDCL Energy Efficiency Income Trust PLC on Friday said it has agreed to invest approximately USD31 million in a large-scale green gas-to-grid project in the US state of Indiana.
The investment involves the acquisition of an operating renewable power facility in the town of Reynolds, and further investment in the expansion of the facility to enable the project to produce green gas. The company's investment will be in the form of senior and subordinated debt.
The project is operated by Bio Town Ag, an experienced operator in the sector with a successful track record in developing, constructing and operating anaerobic digestion and gas grid projects, according to SDCL Energy.
The investment in the facility will increase the supply of green gas within the gas grid, thus directly reducing greenhouse gas emissions arising from the existing supply and consumption of energy, in line with the company's strategy and investment policy, it said.
The investment supports SDCL Energy's total returns target as well as its progressive dividend policy, it said.
"This is a market that we have been watching closely for some time and this acquisition will further diversify SDCL's portfolio by technology, counterparty, and project stage; as well as supporting SDCL's dividend policy. We look forward to the opportunity to expand the facility and increase the supply of green gas within the gas grid, helping to reduce greenhouse gas emissions and enhancing returns for our shareholders,'' said Chief Executive Jonathan Maxwell.
Shares in SDCL were trading unchanged at 117.50 pence each in London on Friday afternoon.
By Amrit Sahota; newsroom@alliancenews.com
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