JLEN buys Yorkshire-based '˜green' energy plant for £15.3m

JLEN, the listed environmental infrastructure fund, has announced the acquisition of Vulcan Renewables Ltd for a total consideration, including working capital, of £15.3 million.

JLEN has bought Vulcan Renewables

The acquisition, in partnership with Future Biogas Ltd, is the company’s first investment in the anaerobic digestion sector, diversifying the company’s portfolio of environmental infrastructure projects.

Sign up to our Business newsletter

Sign up to our Business newsletter

Vulcan Renewables has been acquired from Venture Capital Trusts managed by Downing LLP.

The plant, based 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.

The acquisition was funded by a drawdown under the company’s revolving credit facility.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.”