Future Biogas is preparing to launch a £35mln clean-energy IPO in London

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UK-based clean energy firm Future Biogas is preparing a float on the London Stock Exchange alongside a new growth phase in which it seeks to build some 25 new power projects in the United Kingdom.

Future Biogas’ stated aim is to build these 25 new plants by 2028, to grow an existing portfolio of 10 biogas plants operated on behalf of investment entities backed by Aviva and JLEN Environmental Assets Group.

The growth strategy additionally includes carbon-capture and storage ‘bolt-on’ projects which further boost the environmental credentials for the soon-to-be-listed share.

It is eyeing a £35mln raise in the London IPO which is slated for July.

“Biogas is a proven and reliable green alternative to fossil fuels,” chief executive Philipp Lukas said in a statement. “Our planned IPO will allow us to expand our portfolio of biogas plants.  As a source of energy generated entirely in the UK, we can reduce the need for gas imports.

In the carbon capture venture, Future Biogas is teamed up with the Northern Lights Project – a venture by a number of oil and gas firms with a presence in the North Sea.

Carbon captured by Future Biogas will be supplied to Northern Lights for permanent storage underground, beneath the North Sea.

The Northern Lights venture partners include Royal Dutch Shell, Total and Equinor.

Future Biogas will generate carbon offsets for its part in the venture, and it intends to sell them to corporate buyers.

Lukas highlighted: “Our plans to add carbon capture and storage technology to existing and future plants, will move us from a carbon neutral company to one that actively reduces the amount of carbon in the atmosphere.

“Through our relationship with Northern Lights, Future Biogas will be one of the first green CO2 projects to permanently store CO2 underground. 

“The carbon credits we receive will be sold to companies so they can support decarbonisation beyond their own carbon footprint. This is a very exciting development, and we look forward to delivering on our ambitious plans.”

It marks an expansive scope to the business which is also teamed up with farming communities to source ‘energy crops’ to feed the biogas production operations. Through its ties to farming the company currently receives some 500,000 tonnes of crops including maise, rye and grass.

The crops are bought under long term fixed-price contracts which the company says provide greater financial certainty for farmers as it allows them to decouple from commodity markets.

Future Biogas expects to grow the number of farmers it works with as it pursues its growth plan.

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