Q&A with FGEN’s Mountney: ‘Energy transition requires a holistic approach’

In this Q&A, Ed Mountney, investment manager at Foresight Environmental Infrastructure (FGEN), sits down with Natalie Kenway to discuss the opportunities for infrastructure, wholesale portfolios and his outlook for sustainable investment.

Provide us with some background on FGEN… when was it launched? Who for? What does it invest in and aim to achieve? 

Foresight Environmental Infrastructure is a listed environmental infrastructure investment company, launched in 2014 and managed by Foresight Group, a leading investment manager specialising in real assets and capital for growth. FGEN invests in a diversified portfolio of infrastructure assets designed to deliver stable returns, long-term predictable income, and opportunities for growth.

Its overarching aim is to support the transition towards decarbonisation and sustainable resource management. As a publicly listed company, FGEN offers investors access to private infrastructure assets that would otherwise be difficult to reach.

Since its inception over a decade ago, the company has consistently delivered year-on-year dividend growth and now follows a progressive dividend policy.

Where are these opportunities from a sustainable perspective in infrastructure right now? 

Environmental infrastructure continues to benefit from a strong combination of social, economic and political tailwinds, making it a compelling multi-decadal market opportunity. This momentum is largely driven by the growing demand for electrification and the increasing cost competitiveness of renewable energy sources. Regulatory support, such as the UK Energy Act and the EU Net Zero Industry Act, has further accelerated progress.

Beyond the energy sector, we are also witnessing exciting developments in areas such as water and waste management, where both governmental and societal pressures are encouraging more sustainable practices.

See also: Schroders Greencoat launches energy infrastructure LTAF

What are some of the latest additions to the portfolio? 

FGEN’s recent investment activity has focused on funding construction across its growth portfolio. Notable additions include CNG Fuels, Europe’s largest supplier of 100% renewable and sustainable biomethane for the transport industry. Another innovative project is a 2.4-hectare glasshouse that utilises otherwise wasted heat and power from one of FGEN’s anaerobic digestion facilities to grow pharmaceutical-grade cannabis under a strict Home Office licence.

Additionally, FGEN has invested in a highly sustainable land-based aquaculture facility in Norway, which is capable of producing up to 8,000 tonnes of trout annually.

What do we need to see in terms of policy and investment for the energy transition to gain pace? 

To maintain or accelerate the energy transition, it is essential that policy and regulatory frameworks align to facilitate private investment into the sector. This includes efficient planning and development pathways, transparent procurement processes, and long-term government commitments to infrastructure spending and economic support, which are crucial for providing investor stability.

A holistic approach is needed – one that encompasses not only power but also heat, energy efficiency, electrification of downstream consumption, and the sustainable use of resources. In the power sector specifically, grid infrastructure remains a key barrier to the expansion of clean energy across the UK and Europe.

Significant investment in storage and transmission is required to support the widespread deployment of renewables. While governments have begun to address this, it will take years of planning and execution.

Another area requiring attention is biomethane. A clear strategy is needed in both the UK and Europe to harness the potential of carbon-neutral biomethane in reducing reliance on natural gas. The UK government is currently working on this, and we anticipate a policy framework to be introduced in 2026.

Where does allocations to infrastructure sit within wholesale investor portfolios? 

Infrastructure plays a vital role in portfolio construction, offering diversification compared to traditional asset classes such as equities and bonds. These assets often provide long-term, stable income streams that are less correlated with broader equity markets. When structured appropriately and invested in the right sectors, infrastructure can offer downside protection through mechanisms such as secured or contracted revenues, the provision of essential services with pricing power, monopolistic market positions, and inflation linkage.

Beyond these traditional characteristics, the energy transition presents a rapidly evolving set of asset classes that can deliver capital growth by investing earlier in the value lifecycle. In recent years, infrastructure investment managers have increasingly adopted strategies that blend infrastructure and private equity approaches.

See also: Amundi: Just energy transition ‘imperative’ as India scales clean energy infrastructure

What’s your outlook for appetite for sustainable investment? 

We remain highly optimistic about the outlook for sustainable investment. Decarbonisation continues to be one of the defining investment megatrends of our time, requiring substantial capital across a wide range of sectors. This trend is closely aligned with the sustainable growth of digitisation, another major driver of investment.

We continue to identify a broad spectrum of attractive opportunities across renewable energy generation, energy infrastructure, and sustainable resource management, all of which offer a compelling balance of income and growth potential.