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John Laing Environmental Assets acquires another anaerobic digestion plant

John Laing Environmental Assets acquires another anaerobic digestion plant

John Laing Environmental Assets acquires another anaerobic digestion plant – John Laing Environmental Assets (JLEN) has announced the acquisition of an anaerobic digestion (AD) asset, from Merlin Renewables Limited for a total consideration, including working capital, of c. £18.1 million.

Location

The Merlin AD plant is located in Hibaldstow, North Lincolnshire and was commissioned in September 2014.

The Plant

The plant has a thermal capacity of c.5MWth and predominantly produces biomethane to be injected to the national gas grid. In addition, the plant also has a 0.5MWe combined heat and power (CHP) engine and is accredited under the renewable heat incentive (RHI) and feed-in-tariff (FiT) schemes.

Addition to JLEN’s portfolio

The acquisition builds on JLEN’s growing portfolio of four AD projects and brings the total capacity of the renewable energy assets in the JLEN investment portfolio to 274.2MW.

Details of the acquisition

The AD plant has been acquired from Venture Capital Funds managed by Downing LLP and minority shareholdersFuture Biogas Limited will continue to provide management, operations and maintenance services to the AD plants after the acquisition.

The acquisition was funded by a draw-down under the Company’s revolving credit facility.

 Comment from Richard Morse, Chairman of JLEN

“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.”

More on JLEN

JLEN reported that their solar portfolio generation was in-line with budget whilst wind was below reflecting poor wind resource, and the AD portfolio continued its positive trend (overall renewables generation were just below budget).

JLEN : John Laing Environmental Assets acquires another anaerobic digestion plant

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