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JLEN ventures into biogas with Vulcan Renewables acquisition

UK-based John Laing Environmental Assets Group Ltd (JLEN), an environmental infrastructure investment fund has announced the acquisition of Vulcan Renewables Ltd for a total consideration, including working capital, of GBP 15.3 million (≈ EUR 17.3 million). In partnership with operator Future Biogas Ltd, the deal is JLEN's first investment in the anaerobic digestion (AD) sector, further diversifying its portfolio of environmental infrastructure projects in wind, solar, waste and wastewater.

According to a statement, the Vulcan Renewables anaerobic digestion (AD) plant was acquired from Venture Capital Trusts managed by Downing LLP having provided the original funding into the business in 2012. The plant, located in Hatfield Woodhouse near Doncaster, was commissioned in October 2013 and was one of the first commercial biogas-to-grid projects in the UK.

It has a capacity of 5 MWth and predominantly produces biomethane. In addition, the plant also has a 500 kWe CHP engine and is accredited under the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FIT).

This acquisition brings the total capacity of the renewable energy assets in the JLEN portfolio to 230.2 MW and was funded by a draw-down under the company’s revolving credit facility.

We are pleased to make our first investment in the anaerobic digestion sector through Vulcan Renewables, a project with a proven operational history. With its RPI-linked RHI and FIT revenue streams, the project adds to the diversification of the JLEN portfolio, said Richard Morse, Chairman of JLEN,

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