Thomson Geer advises ReNu Energy on its $100 million bioenergy alliance with UK based investment fund

19 June 2018


Thomson Geer has advised ReNu Energy Limited (ASX:RNE) on its $100 million bioenergy alliance with Resonance Industrial Water Infrastructure Fund (RIWIF). Partner, Eugene Fung and Graduate Lawyer, Thomas Gardner advised on the deal.

ReNu is an independent power producer which delivers its customers with clean energy products, at a lower price, with no upfront costs.

RIWIF is an investment fund managed by UK based Resonance Asset Management Limited, which is focused on investment in outsourced industrial water treatment, waste to energy and resource recovery infrastructure projects in Europe, Australia, China and South East Asia.

The Alliance Agreement was signed with the intention to jointly develop a $100 million bioenergy portfolio on a 30% ReNu and 70% RIWIF basis. For all projects developed by the alliance, Renu will be engaged as head engineering procurement and construction contractor and will provide ongoing operations, maintenance and management services.

The Alliance Agreement provides a funding pathway for ReNu Energy to establish a portfolio of bioenergy investments, allowing the partners to pursue new business opportunities within ReNu Energy’s existing bioenergy business development pipeline.

The alliance has kicked off with an initial project, being the sale of 70% of the Goulburn Bioenergy Project from ReNu to RIWIF for $2.8 million, with ReNu continuing as the long-term operator of the Project. Completion of this transaction is expected in July 2018.

A second proposed project is in the pipeline – which is an acquisition by RIWIF of 70% of ReNu’s interest in the AJ Bush ‘G4’ expansion project.

Thomson Geer is also advising ReNu on its recently announced equity capital raising which is aimed at raising sufficient equity to have a total of around $12 million in debt and equity to deploy towards further expanding their project portfolio.

Thomson Geer Partner, Eugene Fung said:

“We congratulate ReNu Energy and RIWIF on their collaboration. The biogas project alliance is part of a clear strategy that ReNu has been delivering, along with its focus on solar PV projects. We are delighted to be closely involved with the company and its projects and look forward to assisting it expand its portfolio of clean energy assets.”