JLEN Environmental Assets (JLEN) has bought a 100% stake in Cramlington Renewable Energy Developments (CRED), which owns a biomass combined heat and power plant (CHP plant) and its underlying contracts. The acquisition of CRED, for an undisclosed amount, was made on a debt-free basis and represents JLEN’s first investment into a large-scale biomass CHP plant.
The CHP plant is located to the north west of the town of Cramlington in Northumberland and utilises proven technology to process a diversified biomass fuel mix, creating up to 28MW of electrical power and 8MW of heat for export via private wire to industrial customers and the grid.
‘Around 66% of CRED’s revenues are backed by long-term subsidies’
The CHP plant has been fully operational since 2018 and earns revenues from:
- the subsidy regimes of Renewable Obligations Certificates and Renewable Heat Incentive;
- the sale of electricity to the market; and
- the sale of heat and power via private wire to industrial customers. In aggregate, c. 66% of CRED’s revenues are backed by long-term subsidies and an additional c. 10% via long-term contracts.
Richard Morse, chairman of JLEN, said: “We believe that assets such as these (large scale biomass CHP) provide a sustainable source of renewable heat and power that can be utilised as baseload power to the grid and a direct provision to nearby industrial customers. The plant has a strong operational track record and we look forward to optimising this asset for the future.”
JLEN: JLEN makes first investment into large-scale biomass combined heat and power plant