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JLEN acquires fourth UK biogas plant

UK-based John Laing Environmental Assets Group Ltd (JLEN), an environmental infrastructure investment fund has announced the acquisition of its fourth UK anaerobic digestion (AD) asset, Merlin Renewables Ltd for a total consideration, including working capital, of approximately GBP 18.1 million (≈ EUR 20.2 million).

The Merlin AD plant is located in Hibaldstow, North Lincolnshire and was commissioned in September 2014. The plant has a capacity of 5 MWth and predominantly produces biomethane to be injected to the national gas grid. In addition, the plant also has a 0.5 MWe cogeneration engine and is accredited under the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FIT) schemes.

Funded by a draw-down under the company’s revolving credit, the facility has been acquired from Venture Capital Funds managed by Downing LLP and minority shareholders. The plant was developed by Future Biogas Ltd that will continue to provide management, operations, and maintenance services to the AD plants after the acquisition.

The acquisition builds on JLEN’s growing portfolio of five AD projects since it ventured into the biogas sector in August 2017 and brings the total capacity of the renewable energy assets in the JLEN investment portfolio to over 274 MW.

This latest acquisition further underlines the commitment JLEN has to diversifying its portfolio and the value it places in the anaerobic digestion sector. We are pleased to see our partnership with Future Biogas continues to strengthen across a portfolio of four projects together, said Richard Morse, Chairman of JLEN.

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