JLEN invests in biomethane capacity expansion at Vulcan Renewables
UK-based John Laing Environmental Assets Group Ltd (JLEN), an environmental infrastructure investment fund has announced a further investment in the Vulcan Renewables anaerobic digestion (AD) plant that it acquired in August 2017. The investment consists of GBP 8.5 million (≈ EUR 9.5 million) in funding to significantly expand the AD plant's biomethane generating capacity.
Located in Hatfield Woodhouse, South Yorkshire, Vulcan Renewables Ltd was acquired by the company in August 2017. The 5 MWth AD plant was commissioned in October 2013 and predominantly produces biomethane. 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).
According to a statement, the plant extension will be carried out by Future Biogas, JLEN’s business partner in the AD sector and current service provider at the Vulcan site. The works involve converting the existing storage tank to a primary digester, providing for separate digestate storage, installing an additional biomethane upgrading unit, together with associated engineering, electrical and civil works.
The construction works are expected to complete in late 2019. Operations will continue throughout this period with no expectation of significant downtime. This further investment in the Vulcan Renewables AD plant will be funded by a draw-down under the company’s revolving credit facility.
We are pleased with our initial investments in the anaerobic digestion sector, and this expansion project is a good opportunity to build out our capability at the Vulcan Renewables AD plant. It represents our first investment in a construction project, and we have taken care to understand and limit the risks involved, including through the choice of Future Biogas as our delivery partner. We are looking forward to a successful delivery and enhanced revenues once completed, said Richard Morse, Chairman of JLEN.