Risk Factors

Company: Community Gas Partners Ltd
Registered in England & Wales, Company No. 16529366
Registered Office: 64 High Street, Bideford, Devon, EX39 2AR, United Kingdom

Risk Factors – Community Gas Partners

Investments in early-stage renewable energy infrastructure involve significant risks. The following Risk Factors highlight key considerations that prospective investors should carefully evaluate before making any investment decision in connection with Community Gas Partners Limited (“Community Gas Partners”, “we”, “our”, “us”).

This list is not exhaustive. Additional risks, including those unknown or currently considered immaterial, may also affect outcomes.

  1. Planning & Regulatory Risk
  • Our projects require planning approvals, environmental permits, and regulatory consents. Planning applications may be delayed, rejected, or approved subject to conditions that affect project viability.
  • Changes in government policy, subsidy frameworks (such as the Green Gas Support Scheme), or environmental legislation could materially alter project economics.
  1. Feedstock & Counterparty Risk
  • Anaerobic Digestion plants depend on long-term contracts with farmers, councils, and waste suppliers. If counterparties fail to deliver agreed volumes or if waste disposal regulations change, feedstock security may be compromised.
  • Contractual disputes, insolvency, or non-performance of counterparties could affect operations and financial outcomes.

 

  1. Grid & Infrastructure Risk
  • Projects require timely and affordable grid and gas connection approvals. Grid connection costs are subject to inflation and capacity constraints.
  • Delays or unexpected increases in grid infrastructure costs may reduce returns or impact project deliverability.
  1. Market & Price Volatility
  • Revenues depend on long-term government tariffs, but projects may also rely on secondary income streams such as Renewable Energy Guarantees of Origin (REGOs) and digestate sales.
  • The market value of these income streams may fluctuate with demand, energy prices, and policy changes.
  1. Operational & Technical Risk
  • Anaerobic Digestion is a proven technology, but operational risks include plant downtime, equipment failure, and lower-than-expected gas yields.
  • Construction risks include delays, contractor disputes, and cost overruns.
  • Natural disasters, labour shortages, or pandemics could interrupt development or operations.
  1. Community & Social Licence Risk
  • AD projects require engagement with local communities and stakeholders. Resistance from residents or councils may delay planning or increase costs.
  • Negative publicity or perceived environmental impacts (e.g. odour, traffic movements) could affect community support.
  1. Liquidity & Exit Risk
  • Investments in development-stage projects are illiquid. There is no secondary market for the securities, and investors may have to wait until a trade sale or exit event to realise value.
  • Exit valuations depend on market appetite from utilities, infrastructure funds, and ESG investors, which may vary over time.
  1. Forward-Looking Uncertainty
  • Financial models, projected returns, and exit valuations are based on assumptions that may not materialise.
  • Unforeseen global events such as economic downturns, geopolitical crises, or supply chain shocks may materially alter expected performance.
  1. Concentration Risk
  • The current pipeline focuses on a portfolio of UK sites. Adverse changes in UK planning policy, feedstock markets, or gas infrastructure rules could disproportionately affect outcomes.
  1. Investor Suitability
  • Investments in Community Gas Partners are intended only for sophisticated, professional, or institutional investors who fully understand the risks involved.
  • Such investments are not suitable for retail investors and may not provide capital protection.

 

Important Notice:

The risks described above should be considered alongside the Disclaimer and Privacy Policy available on this website. Prospective Investors must perform their own due diligence and seek independent financial, legal, and tax advice before investing.