John Laing’s environmental infrastructure fund (JLEN) has added a further 10MW of anaerobic digestion (AD) plant to its books.
The fund has acquired Egmere Energy Limited and Grange Farm Energy Limited for around £36m.
The 5MW Egmere plant, located in North Norfolk, predominantly produces biomethane for gas grid injection, and has a 500kW CHP engine. It earns both RHI and FiT subsidies.
Grange Farm, in Lincolnshire, has a similar spec, output and revenue streams.
The plants were acquired from venture capital funds managed by Downing LLP, EIS funds managed by Amersham Investment Management and minority shareholders. Future Biogas Limited will continue to provide management, operations and maintenance services to the AD plants after the acquisition.
The acquisitions double JLEN’s AD portfolio. The fund has acquired two plants over the last year and outlined plans to buy more due to attractive yields when posting annual results last month.
The company acquired its first two plants, both 5MW, for £26m. The £36m paid for Egmere and Grange Farm may suggest the secondary AD market is heating up.
“We are pleased with JLEN’s continued investment in the anaerobic digestion sector and look forward to working with our partner, Future Biogas, to continue the strong performance of these assets,” said JLEN Chairman, Richard Morse.