Competition watchdog clears Severn Trent Water's acquisition of biogas business

The Competition and Markets Authority has reported that it has cleared the anticipated acquisition by Severn Trent of biogas producer, Andigestion adding: “the full text of the clearance decision will be published in due course.”

The merger inquiry into the acquisition by the water company, through its subsidiary Severn Trent Green Power, was launched 23 June 2023 to assess “whether the transaction would result in a substantial lessening of competition within the UK for goods or services.”

Andigestion operates two food waste anaerobic digestion plants in Devon and Gloucestershire. The acquisition will add 45 GWh of energy generation output every year to Green Power's output – a 16% increase. It will give the firm new reach into Southwest England.

Severn Trent Green Power owns a portfolio of renewable energy production facilities including 33 Solar parks, six wind turbines, eight hydro-electric turbines, nine anaerobic digestion and five composting facilities.

The company reported that, in 2020, Green Power exported some 260GWh of renewable electricity and gas to grid, making its AD facilities “the largest producers of renewable energy from food waste in the UK.”