OakNorth has provided a £25 million loan (€29.3 million) to Northern Ireland renewable energy company EAG Bioenergy, supporting the expansion of its bioenergy asset portfolio across the UK and Ireland and reinforcing Business Energy infrastructure focused on renewable gas.

Founded in 2019 and headquartered near Belfast, EAG Bioenergy specialises in the acquisition, operation and development of biogas, biomethane and biofertiliser assets. The business is backed by infrastructure investor Vesper Infrastructure Partners and private equity firm OrbeNovo Capital, both active in energy transition investments.

The funding will enable EAG Bioenergy to execute a targeted buy-and-build acquisition strategy, focusing on high-quality, operational biogas and biomethane sites with scope for further expansion. These assets are expected to increase renewable electricity and biomethane production, contributing to energy security while supporting decarbonisation goals across both markets.

The transaction comes as the UK biogas and biomethane sector is forecast to grow at a compound annual growth rate of 13.7% through to 2033, driven by sustainability targets and the need to strengthen domestic energy supply chains. For Business Energy users, renewable gas is increasingly viewed as a dispatchable, low-carbon complement to wind and solar generation.

Peder Bratt, director of EAG Bioenergy and Partner at OrbeNovo Capital, said the financing supports the company’s consolidation strategy in a fragmented market.

“This transaction represents another important step in executing EAG Bioenergy’s buy-and-build strategy across the UK’s fragmented biogas market. The assets being acquired are high-quality, operational sites with expansion potential that fit squarely within our investment thesis of building a scaled, diversified platform underpinned by long-dated, inflation-linked revenues,” he said.

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