(Alliance News) - JLEN Environmental Assets Group Ltd on Monday announced the acquisition of biomass combined heat-and-power plant owner Cramlington Renewable Energy Developments Ltd for an undisclosed sum.
The renewable energy infrastructure investment trust said the deal was made on a debt-free basis and will be JLEN's first investment into a "large-scale biomass CHP Plant".
The plant is located near Cramlington in Northumberland, England and provides up to 28 megawatts of electrical power and 8 megawatts of heat for export to industrial customers and the grid.
Biomass CHP is an energy efficient technology that generates electricity and captures the heat that would otherwise be wasted to provide thermal energy. Biomass CHP power plants are much less carbon intensive than gas or coal-powered plant, as they use a lower-carbon, more sustainable fuel source, including wood, crops and manure.
FTSE 250-listed JLEN said the acquisition is in line with the company's strategy to "further diversify its portfolio" and to secure strong revenue streams.
JLEN Chair Richard Morse said: "We are happy to announce JLEN's first investment into large scale biomass CHP, which leverages the knowledge and experience gained in owning a number of bioenergy assets already.
"We believe that assets such as these provide a sustainable source of renewable heat and power that can be utilised as baseload power to the grid and a direct provision to nearby industrial customers. The plant has a strong operational track record and we look forward to optimising this asset for the future."
Shares were up 0.1% at 102.46 pence in London early on Monday morning. They're down 10% so far in 2021.
By Will Paige; willpaige@alliancenews.com
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