Powering a low carbon future

Over the past year, the world has witnessed a sequence of climate-related events, underscoring the escalating consequences of climate change. Record-high ocean temperatures, unprecedented flooding and prolonged heatwaves have led to severe droughts and significant agricultural disruption. These developments reinforce the urgency of comprehensive climate adaptation and mitigation strategies.

While the scientific consensus on climate change has only strengthened, climate policy has become increasingly politicised. In some jurisdictions, governments have slowed or reversed key policy commitments, creating uncertainty and volatility in regulatory environments. This geopolitical flip-flopping on climate change policy has in some cases led investors and companies to consider pausing or redirecting their efforts in certain geographies. Yet beneath the noise, the fundamental momentum towards cleaner energy and more efficient energy usage continues. In 2024 alone, global renewable power capacity increased by 585 GW, representing a 15.1% increase on the previous year’s total capacity¹. According to the International Energy Agency, capital flows into renewable energy continue to outpace all other types of energy².

As a responsible investor in critical infrastructure, Ancala recognises the opportunity and the obligation to help drive this transformation. Our capital, operational and strategic expertise enables us to have a significant impact within the critical infrastructure companies we invest in, which in turn powers thriving communities.

Investing in the energy transition

Our recent investment activity continues to reflect Ancala’s longstanding commitment to sustainability and decarbonisation. We have now invested more than €1 billion in companies and projects that contribute to the energy transition. In 2024, we again completed a number of transactions with clear sustainability-linked features:

• Our successful exit from liquefied natural gas terminal, Dragon LNG, followed the implementation of a major decarbonisation programme. This included initiatives such as developing onsite renewable energy to power its operations and brokering leading partnerships to help decarbonise the broader industrial cluster in which the terminal sits.
• We created Germany’s largest independent smart metering platform through our investments in Solandeo and Hausheld. These companies are at the forefront of enabling the German government’s mandated rollout for smart meters to be installed across the nation and will inform more intelligent and efficient energy usage.
• Our Croatian Biomass Platform completed a bolt-on acquisition which increased the renewable energy generation capacity of the platform.
• Energy-as-a-service provider Noventa acquired three district heating energy sites in Scotland where it will install its industry-leading decarbonising heat solution.

Sustainable growth

Ancala’s proactive asset management model continues to drive both commercial success and ESG improvements. In 2024, our portfolio companies achieved an average revenue increase of 12% and grew headcount by 5%, significantly outpacing European economic averages. This performance is a testament to our asset management approach and our Industry Partner model, through which former CEOs and Chairs of leading infrastructure businesses bring hands-on guidance to each asset’s development plan. We continue to work closely with our portfolio companies, providing resources and expertise needed to execute their business plans.

Ensuring ESG is considered at every stage of the investment lifecycle is fundamental to our approach. Ancala works closely with portfolio companies to improve the breadth and quality of ESG data collection, enabling robust benchmarking and the setting of clear, measurable sustainability objectives. This hands-on, data-led approach strengthens asset resilience, operational efficiency and value creation.

We were pleased to once again achieve top scores in our latest UNPRI assessment, with 5-star ratings across Policy, Governance & Strategy and Infrastructure, and a 4-star rating in Confidence Building Measures. These results reflect the strength and consistency of our ESG integration processes.

Facing up to sustainability challenges

Climate resilience remains a central theme in our approach. A key element is the detailed climate analysis we undertake across our portfolio to inform climate related risk and, where relevant, improvement plans. We have implemented a new ESG climate change analysis software to help us to analyse climate change for a wide range of risks and opportunities. It will also support with the identification of possible climate adaptation and mitigation measures. These reviews have led to the delivery of climate awareness workshops and sustainability dialogues to further embed best practices across our portfolio companies.

In parallel, we are actively supporting the development and delivery of decarbonisation initiatives across our assets. Notable examples this year include commencing construction of a new solar farm at Liverpool John Lennon Airport, which is expected to power 25% of the airport’s electricity needs, and Portsmouth Water installing solar panels at several of its facilities to power pumps and water treatment processes.

Our systematic approach ensures our portfolio is well-positioned for the energy transition. In this report, we showcase some of the transformative sustainability opportunities and developments across our portfolio from expanding smart metering capabilities in Germany, to enhancing renewable power generation across the portfolio.

Our portfolio companies are contributing to the development of solutions which address key sustainability challenges facing society. Ancala’s role is to enable and accelerate these efforts, ensuring our investments contribute to a more sustainable, resilient future while creating value for investors.

As we look ahead, we remain committed to acting as a catalyst for positive change; supporting the production of renewable power, the decarbonisation of critical infrastructure, embedding sustainability as a competitive advantage, and working with our partners to deliver enduring value for investors, communities and future generations.

Spence’s foreword introduces Ancala’s 2024 ESG Report. You can read the full report, here.

References

1 – International Renewable Energy Agency: https://www.irena.org/News/articles/2025/Apr/Renewables-in-2024-5-Key-Facts-Behind-a-Record-Breaking-Year
2 – International Energy Agency Global Review 2025: https://www.iea.org/reports/global-energy-review-2025/