The business of Foresight Group

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Breakfast Business with Joe Lynam 6 min 2 speakers 4 chapters transcribed
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What is the main topic discussed in this episode?

Joe Lynam 0:01
Breakfast Business with Enterprise Ireland on Newstalk. We can expect quite a few announcements in tomorrow's budget about improving Ireland's dreadful infrastructural deficit. My next guest is a private equity group which invests in Irish infrastructure and especially in the renewable energy space. They are currently building an interconnector cable between Dublin and Wales and a hydroelectric plant in an old mine in Tipperary. But they still face the headache of planning delays before these huge projects come on stream. Barclay Cribben is head of the Foresight Group here in Ireland and is sitting in front of me. Good morning, Barclay.
Barclay Cribben 0:38
Good morning, Joe, and good morning to your listeners.
Joe Lynam 0:41
Tell us more about what the Foresight Group does.
Barclay Cribben 0:43
Well, the Foresight Group was established 40 years ago. Headquarters is London. We currently have over 15 billion of assets under management across the UK, Europe and Australia. We have two core asset classes where that 15 billion sits. The first one is private equity. And the second one, as you say, is infrastructure equity.

What does the Foresight Group focus on in Ireland?

Barclay Cribben 1:07
Our private equity business here in Ireland typically backs companies making approximately half a million euro right up to 4 million of annual profit. And we invest anything from 2 to 10 million into those companies to fund growth. as well as facilitating full and partial shareholder buyouts.
Joe Lynam 1:25
And you would take a share of those companies, I take it?
Barclay Cribben 1:27
We do indeed. So we allow business owners to de-risk financially, and then as an experienced partner, we roll up our sleeves and really help the business to fulfil its growth potential.

What infrastructure projects is Foresight Group currently developing?

Joe Lynam 1:37
All right, okay. And then hopefully you'll make a profit and you exit at some stage. Indeed. Now, let's focus a little bit on the infrastructure. The hydroelectric plant that you guys are working on hasn't started yet. They're still at the planning stage. It's going to be in temporary. Tell us about that.

What challenges does Foresight Group face in project planning?

Barclay Cribben 1:53
Yeah, delighted to, Joe. Yeah, I mean, a little bit of context before that is that Foresight opened its Dublin office in 2022. We're based down the road in Mount Street. We have a team of six people here doing both private equity and infrastructure. And we've raised 180 million euros from AIB and ISAF. As you say, our infrastructure funds are funding critical energy infrastructure from wind farms, solar farms, batteries and interconnectors. The one you mentioned, Silver Mines, is a pump storage hydro project. It is 300 megawatts storage assets. It's on the site of an old lead and zinc mine. They didn't find any silver there, I'm told. This sits about 10 kilometres south of Neenah.
Joe Lynam 2:36
And basically you pump energy to the top of the mountain and then release it to make the energy.
Barclay Cribben 2:43
That is correct.
Joe Lynam 2:43
Pump water, I should say, not pump energy.
Barclay Cribben 2:45
Yes. If any of your listeners are familiar with Turlock Hill in Wicklow, that has now been in operation circa 50 years.
Joe Lynam 2:53
And Arden and Crush, of course, 100 years.
Barclay Cribben 2:56
Indeed, indeed. This is old proven technology that is very safe and absolutely low carbon.
Joe Lynam 3:01
And very renewable.
Barclay Cribben 3:02
And very, very renewable.
Joe Lynam 3:04
When does that come on stream? Excuse me, the pun.
Barclay Cribben 3:08
A good one indeed, Joe. We are going through the development cycle on that project at the moment. It's been designated an EU project of common interest. We expect construction to start roughly in 2027, possibly 28. And it's a four year construction period with a total build cost of about 600 or 700 million euro.
Joe Lynam 3:27
OK, so not insignificant. And how much energy will it produce?
Barclay Cribben 3:31
So it's 300 megawatts. So if it was running at full throttle, it would be the equivalent of powering circa 300,000 homes. However, it is it does act as a battery generator. So it really serves a purpose of smoothening out the demand curve and price spikes in the energy system.
Joe Lynam 3:49
And will you have pre-sold a lot of that energy or will you just sell it into the grid when you've got it?
Barclay Cribben 3:54
We sell it into the grid as we've got it. But as our grid becomes more dependent and reliable on renewables, it needs assets added. like the Silver Mines project, to provide stability and to keep the grid running at a fixed level.

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