John Laing Environmental Assets Group (JLEN), the listed environmental infrastructure fund, has acquired a Lincolnshire-based anaerobic digestion plant for £18.1 million.
Located in Hibaldstow in North Lincolnshire, the Merlin Renewables AD plant was commissioned in September 2014.
It has been acquired from Venture Capital Funds managed by Downing and minority shareholders.
Future Biogas Limited will continue to provide management, operations and maintenance services to the AD plants after the acquisition.
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 CHP engine and is accredited under the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FiT) schemes.
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.
The acquisition was funded by a draw-down under the Company’s revolving credit facility.
JLEN Chairman Richard Morse said: “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.”