Environmental fund picks up Doncaster AD plant in £15m deal

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Environmental fund picks up Doncaster AD plant in £15m deal
Credit: Shutterstock.com/ LianeM

An anaerobic digestion plant near Doncaster has been acquired by the John Laing Environmental Assets Group (JLEN) for £15.3 million.

The deal – in partnership with Future Biogas – marks JLEN’s first investment in the anaerobic digestion sector for JLEN.

The Vulcan Renewables plant, located in Hatfield Woodhouse, has been acquired from Venture Capital Trusts managed by Downing.

The plant was commissioned in October 2013. It 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.

JLEN Chairman Richard Morse 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.”