Iona Capital

Last updated
Iona Capital Ltd
Type Private
Industry Investment Management
Founded2011
Headquarters London, England
Key people
Mike Dunn, Nick Ross
Products Private Equity,
Website www.ionacapital.co.uk

Iona Capital Ltd is a fund management institution that specializes in the management of equity and debt investments for private and institutional clients. [1] Its investment strategy focuses on seeking out promising start-up companies that align with the UK Government's goal of reducing waste sent to landfills. In addition to its environmental objectives, the company also places a significant emphasis on identifying and partnering with strong management teams.

Contents

History

The Company was established by Nick Ross and Mike Dunn in 2011 with a focus on renewable energy infrastructure projects. Since its conception, the Iona Capital Ltd has been making financially driven investments primarily in the Anaerobic Digestion (AD) plants. Mike Dunn brought 20 years of waste management and investment infrastructure experience to the company. [2] Nick Ross has a broad range of investment experience having sat on a number of investee company boards. The company moved into their new offices at 123 Pall Mall, in March 2019.

Funds under management

Iona Environmental Infrastructure LP (IEILP)

IEILP was established in 2011 to attract institutional investors to invest in Anaerobic Digestion (AD) or In-vessel composting (IVC) plant operations, or companies demonstrating similar investment characteristics

Iona Environmental Infrastructure 2 LP (IEILP 2)

IEILP 2 was established in 2013 with a similar investment mandate to IEILP 1. It closed at £120m and has subsequently been fully invested in large electrical anaerobic digestion plants and biomass combined heat and power infrastructure, often in partnership with commercial power offtakers. The build out of the IEILP 2 assets has been completed, and these assets are now contributing to the decarbonisation of the UK electricity grid.

Iona North West Environmental Infrastructure LP (IEILP NW)

In parallel with the raise of IEILP 2, Iona Capital also raised a £25m regional fund for investment in environmental infrastructure to support the economy of North West England. This fund has invested in anaerobic digestion, biomass cogeneration assets, and advanced bio waste treatment technologies.

Iona Environmental Infrastructure 3 LP (IEILP 3)

IEILP 3 is being raised with a similar investment mandate and strategy to the previous funds. It carried out a soft close of £90m in Autumn 2016, and will close out at £250m in the next 12 to 18 months. Whilst decarbonising the gas grid through the injection of biomethane remains a cornerstone of the investment strategy, the majority of the fund will be invested in energy from waste projects to promote efficient resource recovery and divert waste from UK land fill.

Strategic Areas of Investment Focus

What is Climate Change?

The issue of climate change is one that has rapidly gained traction in the last ten years as there has been an unprecedented increase in the Earth's temperature. Scientist's argue that the reason behind this involves the trapping of the sun's heat in the Earth's lower atmosphere, due to greenhouse gases in the upper atmosphere re-reflecting heat energy back onto the earth.

Two Degrees of Climate Change

The UK has specific targets which need to be met if the country is going to meet its commitments under the Paris Accords. Whilst the decarbonisation of the UK electricity grid is notable success story, there is still a significant increase in renewable electricity generation capacity required over the next two decades. Much more investment and innovation is required to decarbonise the provision of heat and transport. Iona Capital aims to support these national objectives by investing in environmental infrastructure such as heat networks, energy from waste and anaerobic digestion projects whilst closely monitoring the changing commercial viability of nascent technologies such geothermal heat and power, hydrogen and tidal energy conversion.

Integrated Energy Service Solutions

The integration of renewable technologies and bridging technologies such as natural gas cogeneration provides energy users with cost effective solutions to significantly reduce the carbon intensity of goods and services.

Resource Efficiency and the Circular Economy

A key part of meeting the requirements of the Paris Accords is promoting the move from a linear to a circular economy where resources and energy is reused, recycled and remains within the economic system to a far greater extent. Infrastructure which promotes resource efficiency and the circular economy has the potential to significantly contribute to limiting climate change to two degrees.

Related Research Articles

<span class="mw-page-title-main">Biogas</span> Gases produced by decomposing organic matter

Biogas is a gaseous renewable energy source produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste, wastewater, and food waste. Biogas is produced by anaerobic digestion with anaerobic organisms or methanogens inside an anaerobic digester, biodigester or a bioreactor. The gas composition is primarily methane and carbon dioxide and may have small amounts of hydrogen sulfide, moisture and siloxanes. The gases methane and hydrogen can be combusted or oxidized with oxygen. This energy release allows biogas to be used as a fuel; it can be used in fuel cells and for heating purpose, such as in cooking. It can also be used in a gas engine to convert the energy in the gas into electricity and heat.

<span class="mw-page-title-main">Infrastructure</span> Facilities and systems serving society

Infrastructure is the set of facilities and systems that serve a country, city, or other area, and encompasses the services and facilities necessary for its economy, households and firms to function. Infrastructure is composed of public and private physical structures such as roads, railways, bridges, tunnels, water supply, sewers, electrical grids, and telecommunications. In general, infrastructure has been defined as "the physical components of interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions" and maintain the surrounding environment.

Alternative technology is a term used to refer to technologies that are more environmentally friendly than the functionally equivalent technologies dominant in current practice. The term was coined by Peter Harper, one of the founders of the Centre for Alternative Technology, North Wales, in Undercurrents (magazine) in the 1970s. Alternative Technologies are created to be safer, cleaner, and overall more efficient. The goals of alternative technology are to decrease demand for critical elements by ensuring a secure supply of technology that is environmentally friendly, increased efficiency with lower costs, and with more common materials to avoid potential future materials crises. Alternative technologies use renewable energy sources such as solar power and wind energy. Some alternative technologies have in the past or may in the future become widely adopted, after which they might no longer be considered "alternative." For example, the use of wind turbines to produce electricity.

<span class="mw-page-title-main">Cogeneration</span> Simultaneous generation of electricity and useful heat

Cogeneration or combined heat and power (CHP) is the use of a heat engine or power station to generate electricity and useful heat at the same time.

The Renewables Obligation (RO) is designed to encourage generation of electricity from eligible renewable sources in the United Kingdom. It was introduced in England and Wales and in a different form in Scotland in April 2002 and in Northern Ireland in April 2005, replacing the Non-Fossil Fuel Obligation which operated from 1990.

<span class="mw-page-title-main">Anaerobic digestion</span> Processes by which microorganisms break down biodegradable material in the absence of oxygen

Anaerobic digestion is a sequence of processes by which microorganisms break down biodegradable material in the absence of oxygen. The process is used for industrial or domestic purposes to manage waste or to produce fuels. Much of the fermentation used industrially to produce food and drink products, as well as home fermentation, uses anaerobic digestion.

Renewable natural gas (RNG), also known as biomethane or sustainable natural gas (SNG), is a biogas which has been upgraded to a quality similar to fossil natural gas and has a methane concentration of 90% or greater. By removing CO2 and other impurities from biogas, and increasing the concentration of methane to a level similar to fossil natural gas, it becomes possible to distribute RNG to customers via existing gas pipeline networks. RNG can be used in existing appliances, including vehicles with natural gas burning engines (natural gas vehicles). Renewable natural gas is a subset of synthetic natural gas or substitute natural gas (SNG).

<span class="mw-page-title-main">Waste-to-energy</span> Process of generating energy from the primary treatment of waste

Waste-to-energy (WtE) or energy-from-waste (EfW) is the process of generating energy in the form of electricity and/or heat from the primary treatment of waste, or the processing of waste into a fuel source. WtE is a form of energy recovery. Most WtE processes generate electricity and/or heat directly through combustion, or produce a combustible fuel commodity, such as methane, methanol, ethanol or synthetic fuels, often derived from the product syngas.

A mechanical biological treatment (MBT) system is a type of waste processing facility that combines a sorting facility with a form of biological treatment such as composting or anaerobic digestion. MBT plants are designed to process mixed household waste as well as commercial and industrial wastes.

The Directive on the promotion of cogeneration based on a useful heat demand in the internal energy market and amending Directive 92/42/EEC, officially Directive 2004/8/EC, is a European Union directive for promoting the use of cogeneration, popularly better known as the 'Combined Heat and Power (CHP) Directive'.

Global Infrastructure Partners (GIP) is an infrastructure investment fund making equity and selected debt investments. GIP's main headquarters are located in New York City and its equity investments are based on infrastructure assets in the energy, transport and water & waste sectors. GIP employs approximately 150 investment and operational professionals and has offices in New York, London and Sydney, with operational headquarters in Stamford, Connecticut. In total as of 2018, its portfolio companies employ approximately 21,000 people.

<span class="mw-page-title-main">100Green</span> British sustainable energy company

100Green, formerly Green Energy UK, is an independent sustainable energy company which sells 100% Ofgem-certified green and renewable electricity and gas, to homes, businesses and organisations in England, Wales and Scotland. 100Green is the only energy supplier in the UK to offer 100% green gas. Based in Ware, Hertfordshire, 100Green was established in 2001 by chief executive officer Douglas Stewart.

SUEZ Recycling and Recovery UK Ltd, formerly SITA UK Limited, is a British waste management company, established in 1988. It was previously called Sitaclean Technology. It began as a provider of local authority services, with its first municipal services contract in Erewash, Derbyshire in 1989. Suez has expanded its business through a combination of new contracts, joint venture partnerships and acquisitions.

A feed-in tariff (FIT) is paid by energy suppliers in the United Kingdom if a property or organisation generates their own electricity using technology such as solar panels or wind turbines and feeds any surplus back to the grid. The FIT scheme entered into law by the Energy Act 2008 and took effect from April 2010. The scheme closed to new applicants on 31 March 2019.

<span class="mw-page-title-main">Association for Renewable Energy and Clean Technology</span> UK non-governmental energy trade association

The Association for Renewable Energy and Clean Technology, previously known as Renewable Energy Association (REA), is a renewable energy and clean technology trade association in the UK encompassing all of renewables industry in the United Kingdom. REA covers renewable power & flexibility, heat and cooling, circular bioresources and transport. The REA is a not-for-profit company.

The United Kingdom is committed to legally binding greenhouse gas emissions reduction targets of 34% by 2020 and 80% by 2050, compared to 1990 levels, as set out in the Climate Change Act 2008. Decarbonisation of electricity generation will form a major part of this reduction and is essential before other sectors of the economy can be successfully decarbonised.

<span class="mw-page-title-main">Harvest Power</span> American organics management company

Harvest Power, Inc. was a privately held organics management company headquartered in Waltham, Massachusetts, United States that specializes in converting food waste and yard waste into biofuel, compost, mulch and fertilizer. In 2014 Fast Company named it one of the most innovative companies in the world. In August of 2020 Harvest Power Orlando ceased operations for unknown reasons and all assets were put up for sale; the company was dissolved in April 2021.

<span class="mw-page-title-main">Fajr Capital</span>

Fajr Capital is a sovereign-backed private equity firm, with a focus on strategic high-growth sectors in key Organisation of Islamic Cooperation (OIC) markets. Headquartered in the Dubai International Financial Centre, Fajr Capital has a diverse portfolio consisting of businesses operating in over 10 key MENA and ASEAN markets, including: Brunei Darussalam, Egypt, Malaysia, Oman, Saudi Arabia, Turkmenistan and United Arab Emirates.

Biogen (UK) Ltd is a leading UK owner and operator of anaerobic digestion and composting plants based in Bedfordshire. It is responsible for the construction of 22 plants to date and currently operates fourteen anaerobic digestion plants and six composting facilities in England, Scotland and Wales.

Octopus Energy Group is a British renewable energy group specialising in sustainable energy. It was founded in 2015 with the backing of British fund management company Octopus Group, a British asset management company. Headquartered in London, the company has operations in the United Kingdom, France, Germany, Italy, Spain, Australia, Japan, New Zealand and the United States. On completion of the acquisition of Shell Energy, expected towards the end of 2023, Octopus Energy will be the UK's second largest domestic energy provider.

References

  1. "Company Overview of Iona Capital Ltd". Businessweek. Archived from the original on June 28, 2013. Retrieved 13 May 2013.[ dead link ]
  2. "London Waste & Recycling Board". London Waste & Recycling Board. Retrieved 21 January 2013.[ dead link ]