Renewable energy site snapped up in £15m deal

Listed environmental infrastructure fund John Laing Environmental has swooped for Vulcan Renewables, a partnership developing a sustainable renewable energy site in South Yorkshire, in a £15.3m deal.

The acquisition, in partnership with operator Future Biogas, is the company’s first investment in the anaerobic digestion sector, boosting its portfolio of environmental infrastructure projects including, wind, solar, waste and wastewater.

Vulcan Renewables has been acquired from Venture Capital Trusts managed by Downing having provided the original funding into the business in 2012.

The plant, located in Hatfield Woodhouse near Doncaster, was commissioned in October 2013, and was one of the first commercial biogas-to-grid projects in the UK.

The acquisition was funded by a draw-down under the company’s revolving credit facility.

Richard Morse, chairman of John Laing Environmental, 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.”