Pioneer Point Partners LLP, the sustainable infrastructure investment firm, has entered into an agreement for a new investment from its fund, Pioneer Infrastructure Partners SCSp. The Fund has agreed to acquire Esken Renewables Limited, the UK’s number one supplier of sustainable waste-derived biomass fuel for £108m.
Esken Renewables is a wholly owned subsidiary of the London Stock Exchange-listed UK infrastructure company, Esken Limited. Established in 2009, Esken Renewables supplies 1.7 million tonnes of fuel to the UK biomass sector under long-term contracts. The majority of the renewable biomass fuel comes from waste wood which otherwise would be destined for landfill. Through its market leading infrastructure, including a national network of processing and storage sites, an inhouse fleet of specialist waste vehicles and long-term contracts with several biomass plants, Esken Renewables provides solutions across the whole waste and recycling supply chain, from collection to processing, through to renewable fuel supply.
The Fund is acquiring Esken Renewables with a strategy to continue scaling the business. The Company is strongly aligned with Pioneer’s objectives of contributing to the green transition and to the circular economy. The capital used to fund this acquisition is being deployed in line with Pioneer’s sustainable investment strategy and supports its classification as an “Article 9” fund under the European Union’s Sustainable Finance Disclosure Regulation.
The Fund has now completed seven investments and continues to deploy capital in line with its investment strategy, building on its successful track record in the lower mid-market, value-add sustainable infrastructure sector across Western Europe. Following its launch in 2020, the Fund held a €575m Final Close in February 2022, exceeding the initial €500m target.