The renewable energy sector is changing, according to Chris Tanner, lead manager of the John Laing Environmental Assets (JLEN) investment trust. The space is known as a hot bed for wind and solar energy investing, yet some such as Mr Tanner are turning to anaerobic digestion. This where power plants use biomass – organic matter – and convert it into fuel, which can then be used as gas or turned into electricity.
“It is a space we find attractive now,” says Mr Tanner. “We are not necessarily leaving wind and solar investing behind, but we just see a richer range of opportunity in bio-energy.”
JLEN is on its second round of fund raising in 2018, coming to the market for £50m to fund investment into a pipeline of biomass projects. The fund tends to take equity stakes in energy or waste plants and projects, slightly differentiating it from peers in the Association of Investment Companies (AIC) Infrastructure – Renewable Energy sector. The seven other funds in the sector have all focused on either wind and solar power production or energy storage.