JLEN has bought Vulcan Renewables in a deal worth £15.3mn
JLEN, the listed environmental infrastructure fund, has bought Vulcan Renewables Ltd for a total consideration, including working capital, of £15.3mn.
The acquisition, in partnership with experienced operator Future Biogas Ltd, is the Company's first investment in the anaerobic digestion sector, further diversifying the company's portfolio of environmental infrastructure projects including, wind, solar, waste and wastewater.
Vulcan Renewables has been acquired from Venture Capital Trusts managed by Downing LLP having provided the original funding into the business in 2012.
Richard Morse, the Chairman of JLEN, said "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."
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 5MWth and predominantly produces biomethane. In addition, the plant also has a 0.5MWe 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.
The acquisition was funded by a draw-down under the Company's revolving credit facility.