Acquisition

RNS Number : 2273S

John Laing Environmental Assets Grp

22 June 2018

 

22 June 2018                                                                  

JOHN LAING ENVIRONMENTAL ASSETS GROUP LIMITED

("JLEN" or the "Company")

Further Investment in

Vulcan Renewables anaerobic digestion plant  

JLEN, the listed environmental infrastructure fund, is pleased to announce a further investment in the Vulcan Renewables anaerobic digestion (AD) plant. The investment consists of provision of funding of c.£8.5m to significantly expand the AD plant's biomethane generating capacity.

Vulcan Renewables Ltd was acquired by the Company in August 2017. The AD plant is  located in Hatfield Woodhouse, 9 miles north east of Doncaster, South Yorkshire and was commissioned in October 2013. It has a current capacity of 5MW_th and predominantly produces biomethane. In addition, the plant also has a 0.5MW_e CHP engine and is accredited under the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FiT).

The plant extension will be carried out by Future Biogas, JLEN's business partner in the AD sector and current service provider at the Vulcan site. The works involve converting the existing storage tank to a primary digester, providing for separate digestate storage, installing an additional biomethane upgrading unit, together with associated engineering, electrical and civil works. The construction works are expected to complete in late 2019. Operations will continue throughout this period with no expectation of significant downtime.  

This further investment in the Vulcan Renewables AD plant will be funded by a draw-down under the Company's revolving credit facility.

Richard Morse, the JLEN Chairman, said "We are pleased with our initial investments in the anaerobic digestion sector, and this expansion project is a good opportunity to build out our capability at the Vulcan Renewables AD plant. It represents our first investment in a construction project, and we have taken care to understand and limit the risks involved, including through the choice of Future Biogas as our delivery partner. We are looking forward to a successful delivery and enhanced revenues once completed."

For further details contact:

John Laing Capital Management Limited                     020 7901 3559

Chris Tanner

Chris Holmes

Winterflood Investment Trusts                                      020 3100 0000

Joe Winkley

Neil Langford

Redleaf Polhill                                                                  020 7382 4769

Charlie Geller

Harriet Lynch

About JLEN

JLEN's investment policy is to invest in environmental infrastructure projects that have the benefit of long-term, predictable, wholly or partially inflation-linked cash flows supported by long-term contracts or stable regulatory frameworks.

Environmental Infrastructure is defined by the Company as infrastructure projects that utilise natural or waste resources or support more environmentally-friendly approaches to economic activity. This could involve the generation of renewable energy (including solar, wind, hydropower and biomass technologies), the supply and treatment of water, the treatment and processing of waste, and projects that promote energy efficiency.

Further details of the Company can be found on its website www.jlen.com

LEI: 213800JWJN54TFBMBI68

 

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