SDCL enters agreement to acquire US CHP portfolio

SDCL Energy Efficiency Income Trust plc, managed by Sustainable Development Capital LLP, is pleased to announce the acquisition of a 71% interest in a high-quality Combined Heat and Power portfolio of eight operating CHP projects on the east coast of the USA for a total cash consideration of US$ 5 million.

Six of these CHP projects are being acquired from a well-known US manufacturer and installer of CHP units and solutions. The remaining two projects are being contributed by a fund managed by a US subsidiary of SDCL, which will result in that fund owning the remaining 29% interest in the combined portfolio.

The projects, which comprise CHP units for a prison, university, multi-family developments and a nursing home, have a total installed capacity of 2.5MW of CHP and 1,250 tonnes of cooling capacity. They are each subject to Energy Purchase Agreements, which benefit from long-term contracted cash flows and have been fully operational and revenue generating for over a year. Revenues from the sites are generated through electricity sales, the provision of hot and chilled water and from electricity demand reduction.

As the acquisition was conducted alongside another fund managed by SDCL, the transaction was subject to additional review and approval by the SEEIT Board.