Future Biogas Group Limited

Contents

Future Biogas Group Limited

Company Information

Future Biogas Group Limited

Strategic Report for the Year Ended 31 March 2026

Introduction

The directors present their annual report and the audited financial statements for Future Biogas Group Limited for the year ended 31 March 2026.

Principal activities and strategy

The company acts as a holding company. The company's subsidiaries (the “Group”) develops, owns, operates and manages anaerobic digestion ("AD") facilities across the United Kingdom. The Group's strategy is to accelerate the decarbonisation of UK farming and industry through the production of renewable biomethane, renewable electricity, biofertiliser and carbon removal solutions.

The Group combines long-term ownership of AD infrastructure with operational expertise, enabling it to develop, construct, optimise and operate biomethane facilities that support the UK's transition to net zero.

During the year the Group continued to expand its portfolio of owned and operated assets and strengthen its position as one of the leading biomethane producers in the UK.

Business review

Operational developments

The Group continued to expand both its owned and managed asset portfolio during the year, with sites where the Group holds a majority shareholding increasing from 9 to 10 during the year. The Group now delivers over 7,000 cubic metres per hour of green gas to the grid, or 700 GWh per annum, with 93% of this from controlled assets.

On 20 February 2026, the Group acquired the Burton Agnes anaerobic digestion facility. Prior to acquisition, Burton Agnes had been operated by Future Biogas under a long-term management arrangement. Bringing the asset into Group ownership strengthens the Group's integrated ownership and operational model and provides further opportunities for optimisation and long-term value creation.

During December 2025, the Board approved the retrofit of carbon capture and storage ("CCS") technology at the Group's Egmere, Grange and Merlin facilities. The project represents a significant milestone in the Group's carbon removal strategy and forms part of Project Carbon Harvest. Once operational, the facilities are expected to capture approximately 21,000 tonnes of biogenic carbon dioxide annually while also improving biomethane yields through enhanced methane recovery. The project demonstrates the Group's commitment to developing negative emissions solutions alongside renewable energy production.

During the year, planning permission was secured for new biomethane developments at Riccall Renewables and Beckby Biogas. These projects strengthen the Group's future development pipeline and support its strategy of expanding biomethane production capacity across the UK.

The Group also continued commissioning, optimisation and performance improvement activities across its portfolio, supporting increased renewable gas production and enhanced operational efficiency.

The Board remains focused on developing new unsubsidised biomethane projects and advancing carbon removal opportunities through the deployment of carbon capture technologies across suitable assets.

Financial performance

The Company had net assets of £5.9m (2025: £5.8m) at the balance sheet date.

Future Biogas Group Limited

Strategic Report for the Year Ended 31 March 2026

Principal risks and uncertainties

The Directors recognise the need to identify the key risks and uncertainties the Company faces. These risks and uncertainties could affect the delivery of its strategic objectives. These risks relate to events and depend on circumstances that may or may not occur in the future. The principal risks of the Group, of which the Company is a member, are laid out below in no particular order.

1) Exposure to commodity markets
20% of the Group’s revenue relates to gas export. The wholesale price of natural gas in the UK has been particularly volatile in recent years. Although prices have risen in recent months as a result of geopolitical tensions, including conflict in the Middle East, the market remains subject to bearish pressures such as plentiful LNG supply, high European gas storage and weaker demand during milder winters, which could move prices lower again quickly. A significant fall in the wholesale gas price could adversely affect the Group’s revenues. The Group mitigates this through individual plant hedging tailored to historical performance, an automated monthly trading corridor, trading of the most liquid seasons and daily monitoring of price against hedged positions. As the portfolio expands, the Group is moving towards hedging gas export revenue at a portfolio level.

2) Climate and meteorological conditions
Weather is an important factor in the growing conditions for the Groups’ main feedstocks, maize and rye. Adverse weather conditions can result in reduced harvest yields (impacting availability of feedstocks for the coming year, potentially leading to the requirement to source additional feedstocks from external parties) and increased feedstock costs (impacting profitability). The Group mitigates these risks through a well-diversified and long-established feedstock supply chain, and careful stock management, including redistribution of stock across the portfolio as deemed necessary.

3) Health Safety & environment
As an operator of industrial facilities, the Group is exposed to the risk of a safety incident leading to injury, enforcement action and/or reputational damage. This is managed through experienced health and safety and operational teams, robust training, an effective safety culture encompassing hazard identification and near-miss reporting, engineered and procedural controls responding to specific risk assessments, and health and safety leadership walkrounds. The Group is implementing annual reviews of site-specific risks, quarterly reporting of health and safety trends and an annual health and safety plan.

4) Downtime
The Group sources some equipment and spare parts from the European Union and can experience long lead times on such orders. In the event of downtime on the AD plants, these long lead times can lead to a significant loss of revenue. The Group has worked to mitigate this risk by maintaining a significant investment in spare parts.

Future Biogas Group Limited

Strategic Report for the Year Ended 31 March 2026

5) GHG emission intensity
Regulatory thresholds for greenhouse gas ("GHG") savings have tightened, with the minimum saving rising from 60% to 80% under the Renewable Energy Directive, the Emissions Trading Scheme and the requirements of voluntary corporate buyers. Achieving lower emission intensity is increasingly important for new and expanding projects outside the legacy Renewable Heat Incentive regime, and requires control of methane loss, the use of closed digestate lagoons and a clear plan to reduce agricultural emissions. The Group proactively monitors and reports emission intensities, conducts scenario analysis, tracks developments in the Emissions Trading Scheme and Renewable Energy Directive, and integrates emission intensity analysis into its sustainability reporting. Marginal abatement cost curves are being developed to prioritise mitigation measures and an emission reduction target is being implemented.

SECTION 172(1) STATEMENT

The directors have acted in a way they consider, in good faith, most likely to promote the success of the Company for the benefit of its members as a whole, having regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006.

The Board recognises that long-term sustainable success depends upon maintaining strong relationships with a broad range of stakeholders and considering the wider impact of decisions on employees, customers, suppliers, local communities and the environment.

Governance and decision making

The Board receives regular reports from management covering financial performance, operational performance, health and safety, environmental matters, employee engagement and strategic development activities.

Stakeholder considerations form part of the Board's decision-making process when evaluating significant investments, acquisitions, financing arrangements and major operational initiatives.

Employees

The Group's employees are fundamental to the successful delivery of its strategy.

The Board seeks to attract, retain and develop talented employees through competitive remuneration, training and development opportunities, employee engagement initiatives and a strong safety culture.

During the year the Board considered matters relating to workforce growth, employee wellbeing, recruitment, retention and organisational capability as the Group continued to expand.

Customers and strategic partners

The Group maintains long-term relationships with customers, landowners, offtakers and strategic partners.

The Board recognises that the Group's future success depends on providing reliable renewable energy solutions and maintaining a reputation for operational excellence.

Regular engagement takes place with customers and partners to understand evolving requirements and identify opportunities for collaboration.

Future Biogas Group Limited

Strategic Report for the Year Ended 31 March 2026

Suppliers and farming partners

The Group relies on long-standing relationships with suppliers, contractors and farming businesses.

The Board recognises the importance of fair treatment of suppliers and maintaining resilient supply chains.

Key supplier relationships are managed through regular engagement, performance reviews and long-term contractual arrangements where appropriate.

Communities and the environment

The Group's purpose is closely aligned with environmental sustainability through the production of renewable energy and support for decarbonisation.

The Board considers the environmental and community impacts of its activities when evaluating new developments and operational changes.

Engagement with local communities, regulators and other stakeholders forms an important part of the Group's development and operational processes.

Principal decisions during the year

Approval of carbon capture projects at Egmere, Grange and Merlin

A principal decision taken during the year was the approval in December 2025 of the investment to retrofit carbon capture and storage technology at the Group's Egmere, Grange and Merlin facilities.

In reaching its decision, the Board considered:

• the strategic importance of carbon capture to the Group's long-term growth strategy and Project Carbon Harvest;
• the expected capture of approximately 21,000 tonnes of biogenic carbon dioxide annually;
• the opportunity to increase biomethane production through improved methane recovery;
• capital expenditure requirements and expected investment returns;
• operational impacts during construction and commissioning;
• implications for employees, customers, suppliers and local stakeholders;
• environmental benefits and contribution to UK decarbonisation objectives; and
• regulatory and permitting considerations.

The Board concluded that the investment would strengthen the Group's position as a leader in renewable gas and carbon removal solutions while supporting long-term sustainable growth and value creation for shareholders.

Future Biogas Group Limited

Strategic Report for the Year Ended 31 March 2026

Acquisition of Burton Agnes AD Plant

A principal decision taken during the year was the acquisition of the Burton Agnes anaerobic digestion facility in February 2026.

In evaluating the transaction, the Board considered:

• the long-term strategic benefits of increasing owned biomethane production capacity;
• the impact on employees and operational teams;
• continuity of service for customers and counterparties;
• opportunities to enhance plant performance and operational efficiency;
• environmental benefits arising from increased renewable gas production; and
• the expected long-term financial returns for shareholders.

The Board concluded that the acquisition would strengthen the Group's position as a leading biomethane producer while supporting the delivery of its long-term growth strategy.

Investment in future growth

The Group's strategy remains focused on:

• increasing renewable biomethane production through ownership and operation of AD facilities;
• developing new biomethane plants;
• deploying carbon capture and negative emissions technology across its existing asset base;
• progressing development projects including Riccall and Beckby following the grant of planning permission during the year;
• expanding carbon removal capabilities through Project Carbon Harvest; and
• selectively acquiring and optimising strategic assets where they support the Group's long-term growth objectives.

Approved and authorised by the Board on 14 August 2026 and signed on its behalf by:
 

Future Biogas Group Limited

Directors' Report for the Year Ended 31 March 2026

The directors present their report and the financial statements for the year ended 31 March 2026.

Principal activity

The principal activity of the company is facilitating investment in biogas plants.

Directors of the company

The directors who held office during the year were as follows:

P Lukas

S Beveridge

Information included in the Strategic Report

In accordance with Section 414C(11) of the Companies Act 2006, the Directors have chosen to include certain disclosures in the Strategic Report that would otherwise be required in the Directors' Report.

These include:
- Information on the Company's engagement with employees and stakeholders.

The Directors believe that including this information in the Strategic Report provides a more cohesive and comprehensive overview of the Company's strategy, performance and impact.

Future developments

The Group’s strategy is to build and operate the next generation of AD plants delivering unsubsidised biomethane while helping to decarbonize UK farming and industry. The key areas of strategic focus for the Company are to:

• deliver sustainable unsubsidised biomethane and negative carbon offsets
• develop its own green gas production capacity by building new unsubsidised plants
• deploy negative emissions technology to existing AD plants
• expand its current portfolio of managed assets.

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

The Company, and the group of which it is the parent, are classified as large for the purposes of the Streamlined Energy and Carbon Reporting (SECR) regulations. However, the Company itself does not meet the size thresholds requiring separate SECR disclosures. In addition, where individual subsidiary undertakings within the Group are subject to SECR reporting requirements, the relevant energy and carbon information is included within the consolidated financial statements of Future Biogas Holdco Limited. Accordingly, no separate SECR disclosures are required to be included in this Directors' Report.

Future Biogas Group Limited

Directors' Report for the Year Ended 31 March 2026

Disclosure of information to the auditors

Reappointment of auditors

The auditor, PKF Francis Clark, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Approved and authorised by the Board on 14 August 2026 and signed on its behalf by:
 

Future Biogas Group Limited

Statement of Directors' Responsibilities

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Future Biogas Group Limited

Independent Auditor's Report to the Members of Future Biogas Group Limited

Opinion

We have audited the financial statements of Future Biogas Group Limited (the 'company') for the year ended 31 March 2026, which comprise the Statement of Income and Retained Earnings, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

We have nothing to report in this regard.

Future Biogas Group Limited

Independent Auditor's Report to the Members of Future Biogas Group Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Future Biogas Group Limited

Independent Auditor's Report to the Members of Future Biogas Group Limited

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

As part of our audit planning, we gained an understanding of the company and the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company. The key regulations we identified were health and safety regulations and the General Data Protection Regulation (“GDPR”). We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and relevant tax legislation.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the company complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the company’s ability to continue trading and the risk of material misstatement to the accounts.

We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key incentive identified is to meet the targets set by the company and we determined that the principal risks were related to the overstatement of result, either through overstating revenue, understating expenditure or management bias in accounting estimates.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances of fraud.
• Discussed with the health and safety officer the policies and procedures in place in relation to health and safety. We reviewed the policies, health and safety risks assessments carried out and board meeting minutes maintained by the wider group.
• Discussed if any incidents have been reported during the year under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 (“RIDDOR”).
• Reviewed the GDPR policy and made enquiries to management as to the occurrence and outcome of any reportable breaches.
• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Future Biogas Group Limited

Independent Auditor's Report to the Members of Future Biogas Group Limited

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Tom Beable (FCA) (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Centenary House
Peninsula Park
Rydon Lane
Exeter
Devon
EX2 7XE

14 August 2026

Future Biogas Group Limited

Statement of Income and Retained Earnings

Year Ended 31 March 2026

Future Biogas Group Limited

Balance Sheet

31 March 2026

Approved and authorised by the Board on 14 August 2026 and signed on its behalf by:
 

Company Registration Number: 13386430

Future Biogas Group Limited

Notes to the Financial Statements

Year Ended 31 March 2026

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
10-12 Frederick Sanger Road
Guildford
Surrey
GU2 7YD

These financial statements were authorised for issue by the Board on 14 August 2026.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

Basis of preparation

Group accounts not prepared

The financial statements contain information about Future Biogas Group Limited as an individual company and do not contain consolidated financial information as the parent of a group.

The company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its immediate parent, Future Biogas Bidco Limited, a company incorporated in England & Wales.

Summary of disclosure exemptions

The Company meets the definition of a qualifying entity under FRS102 and has therefore taken advantage of the disclosure exemptions available to it in respect of it individual financial statements.

Exemptions have been taken in relation to the presentation of a cashflow statement, certain disclosure requirements in relation to basic and non basic financial statements and disclosure of remuneration of key management personnel. This information is included in the consolidated financial statements of Future Biogas Bidco Limited as at 31 March 2026 and these financial statements may be obtained from Companies House.

Future Biogas Group Limited

Notes to the Financial Statements

Year Ended 31 March 2026

Going concern

The financial statements have been prepared on a going concern basis.

The Company is an intermediate holding company. The company is therefore reliant on the trading subsidiaries for financial and non-financial support.

At the balance sheet date the company has net current liabilities of £129,725,174 (2025 - £106,393,470) because borrowings due to group undertakings are repayable on demand and amounts due from group undertakings of £129,723,378 (2025 - £106,396,231) are recognised as a non current assets. Whilst amounts due from group undertakings are repayable on demand of the Company, the Directors do not expect to call in these amounts within 12 months of the balance sheet date.

The Directors have obtained confirmation, whilst not legally binding, that the loans from group undertakings will not be called in if it would impact on the company’s ability to trade as a going concern.

The Directors have prepared financial forecasts comprising profit & loss, balance sheet and cashflows covering the period up to 31 March 2028 for the entire group. Based on these forecasts as well as the reassurances received from group companies that financial and non-financial support will not be withdrawn and loans will not be called in, the Directors have concluded it is appropriate to use the going concern basis in preparing these financial statements.

Investments

Tax

Future Biogas Group Limited

Notes to the Financial Statements

Year Ended 31 March 2026

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Borrowings from and to group undertakings; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for borrowings from group undertakings, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Borrowings from group undertakings are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
 

The Company has no employees other than the Directors, who did not receive any remuneration.

The auditor’s remuneration is borne by other group companies, for which there is not a specific recharge to the Company.

Future Biogas Group Limited

Notes to the Financial Statements

Year Ended 31 March 2026

Tax charged/(credited) in the profit and loss account

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2025 - lower than the standard rate of corporation tax in the UK) of 25% (2025 - 25%).

The differences are reconciled below: