JLEN Environmental Assets Group acquires Warren Power
In the United Kingdom (UK), JLEN Environmental Assets Group Ltd (JLEN), an environmental infrastructure investment fund previously known as John Laing Environmental Assets Group Ltd, has announced the acquisition of Warren Power Ltd (WPL) for an initial consideration, including working capital, of £14.8 million (≈ EUR 16.3 million) subject to additional deferred payments up to £800 000 (≈ EUR 884 530).
According to a statement, Warren Power Ltd (WPL) owns 100 percent of the equity in Warren Energy Ltd (WEL), which holds the rights and operational assets that make up the Warren anaerobic digestion (AD) plant.
Located in Methwold, Norfolk, the Warren AD plant was commissioned in December 2015 and became operational in March 2016. The plant has a thermal capacity of around 5 MW and predominantly produces biomethane to be injected to the national gas grid.
In addition, the plant also has a 0.5 MWe combined heat and power (CHP) gas engine and is accredited under both the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FIT) schemes.
The Warren AD plant has been acquired from EIS funds managed by Amersham Investment Management Ltd and minority shareholders, Future Biogas Ltd (FBL). FBL will continue to provide management, operations, and maintenance (O&M) services to the AD plant after the acquisition.
We are pleased with JLEN’s continued investment in the anaerobic digestion sector, with this acquisition of its second AD plant in Norfolk, complementing JLEN’s Egmere plant located nearby. We also value this opportunity to conclude a second transaction with Amersham and look forward to working with our partner, Future Biogas, to continue the strong performance of this asset, said Richard Morse, Chairman of JLEN.
The acquisition was funded by a draw-down on JLEN’s revolving credit facility. The transaction increases the total capacity of renewable energy assets in the JLEN investment portfolio to 286.2 MW and further diversifies the company’s portfolio.