JLEN buys its seventh biogas plant

UK: Company is continuing to expand its portfolio by adding the 5MW biomethane-producing facility

Investment fund John Laing Environmental Assets Group Limited (JLEN) has swooped on another biogas plant, increasing its portfolio to at least seven facilities since entering the sector in 2017.

JLEN announced it has bought Warren Power Limited (WPL) in a statement issued to the London Stock Exchange yesterday. According to the statement, the deal is worth £14.8m (16.3m) with additional deferred payments of up to £0.8m (0.88m). 

WPL owns 100% of the equity in Warren Energy Limited (WEL), which holds the rights and operational assets for a 5MWth biogas facility in Methwold, Norfolk. The plants are fully accredited under the Renewable Heat Incentive and Feed-in Tariff (FIT) schemes, WEL has said previously. 

The plant, which opened in early 2016, mainly produces biomethane for injection into the national gas grid. In late 2017, the facility used a crowdfunding platform to expand its biomethane production. 

At the time, the investment offered 6.75% interest over the term of the investment, which was set to mature "no later" than 28 September this year. The Warren biogas plant was previously owned by Amersham Investment Management and minority shareholders, Future Biogas. It is the second time JLEN has bought a biogas businesses from Amersham.

According to the new statement, Future will continue to provide management, operations and maintenance services to the plant after the acquisition. Future and JLEN already work together on the fund’s portfolio of biogas plants, including its first investment Vulcan, which it bought in 2017.

Since then JLEN has invested in a further five biogas and biomethane-producing facilities, with this latest aquissistatioin taking its plant tally to seven through the ownership of businesses including Merlin, Biogas Meden, Egmere and Grange Farm plants.

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