Severn Trent purchases renewable energy business Agrivert

Written by: Jo Gallacher | Published:
The deal will add 106 GWh to Severn Trent's broader energy and renewables portfolio

Green power business Severn Trent has announced it is buying renewable energy generator Agrivert Holdings for a total consideration of £120m.

The deal covers five food waste anaerobic digestion (AD) plants and five green and comingled waste composting sites but excludes Agrivert’s engineering and overseas activities.

It will add 106 GWh to Severn Trent’s broader energy and renewables portfolio.

Agrivert has been involved in the organic waste recycling market for 20 years, forming long term strategic contracts with local councils and a 20-year renewable energy government subsidy.

Founder Alexander Maddan and his exiting senior management team will continue their work on opening up overseas markets, where Agrivert’s efforts have been focussed over the past few years.

He said: “As we finalised the latest expansion of our AD fleet, it was a natural juncture to create an even more competitive business by combining Agrivert UK with the Severn Trent Group.

“Our familiarity with the Severn Trent Group gives us great confidence that the Agrivert UK business is being transferred into good hands, allowing Agrivert to concentrate on the engineering and overseas markets.”

Severn Trent’s Green Power business already has two operational food waste plants at East Birmingham near Coleshill and West Birmingham near Stourbridge, with a third plant being built in Derby.

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