Terra Firma, the private equity company and owner of Infinis, has held meetings with banks to discuss the possible £1 billion flotation of the energy company.
The Telegraph reports that Terra Firma is currently trying to raise a new fund, after making two large acquisitions in recent months, and is now gearing up to sell select portfolios, probably in early 2013, to win support from investors.
Infinis is reported to hold the second-largest market share of renewable energy in the UK, after Scottish and Southern Energy.
Its 10 per cent hold on the market has helped catapult its sales and earnings, which have seen double-digit increases since 2010, says The Telegraph.
In its last published annual accounts, the company reported that sales were up a third to £191.4m, with earnings before interest, tax depreciation and amortisation up 40pc over the same period, ending march 2011, to £100m.
The company, which has more than £400m of debt, has invested in wind power and solar energy. Its core business has been converting landfill waste to electricity.