Around £135m has been raised for a new infrastructure fund that will invest in small-scale renewable energy projects in the UK, possibly including energy from waste (EfW).
The Environmental Capital Fund has been launched by venture capital firm Scottish Equity Partners (SEP) and backed by energy company SSE and investment giant Lexington Partners.
The fund has been anchored with the acquisition of an existing SSE infrastructure business, SSE Pipelines, which provides low-pressure gas connections for residential and commercial customers across the UK.
The fund will invest in renewable energy projects, such as hydro power, energy efficiency, heat pumps and district heating schemes. SEP said it could also consider EfW developments.
The firm noted that capital requirements for renewable energy are growing, driven by the need to replace “ageing traditional power assets”.
“The market opportunity for energy infrastructure finance is very attractive, and the new fund fits well with our existing activities,” said SEP managing partner Calum Paterson (above).