JLEN Regulatory News (JLEN)

14 September 2022

JLEN Environmental Assets Group Limited

("JLEN" or the "Company")

Investment in a glasshouse construction project and supply of heat and power from adjacent anaerobic digestion plant

JLEN, the listed environmental infrastructure fund, is pleased to announce an investment of up to £26.7m into a glasshouse project via a combination of a senior secured loan for the construction of the glasshouse and a convertible loan and a minority equity stake in the glasshouse operator to provide for working capital. The investment offers further diversification for the Company and is JLEN's first investment into the commercial glasshouse controlled environment space.

The consented 2.1 hectare glasshouse will be built in the UK, in proximity to an existing anaerobic digestion ("AD") plant owned by JLEN, which will separately be upgraded to supply low carbon heat and power to the glasshouse via a private wire. Waste heat from the existing CHP engines will be captured and delivered by pipe and a heat exchanger to the glasshouse. Wastage from the glasshouse produce may also be returned to the digester, creating a circular ecosystem. The glasshouse project will receive energy via the private wire at a discount to the import market price and the AD plant will benefit from the inflation-linked RHI regime and sell electricity at a premium price versus exporting it to the grid while also utilising otherwise wasted heat.

The advanced glasshouse, which is expected to commence production in 2023, will be capable of growing a wide array of different horticultural products, from consumable produce to cut flowers. Its initial operator will focus on the lawful cultivation of the heavily regulated tetrahydrocannabinol flower, conforming to tightly monitored licence requirements for secure supply to established UK-based pharmaceutical manufacturers.

This will generate new diversified revenue streams for JLEN derived from glasshouses, whilst increasing revenues from an existing asset.

Ed Warner, Chair of JLEN, said:

"We are happy to announce JLEN's first investment into a large scale, high-spec glasshouse. We believe this is an attractive opportunity for JLEN to enhance the value of one of its existing assets, creating an integrated ecosystem whilst deploying capital into the controlled environment infrastructure sector."

-ENDS-

For further information and enquiries, please contact:

About JLEN

JLEN's investment policy is to invest in a diversified portfolio of Environmental Infrastructure. Environmental Infrastructure is defined by the Company as infrastructure assets, projects and asset-backed businesses that utilise natural or waste resources or support more environmentally friendly approaches to economic activity, support the transition to a low carbon economy or which mitigate the effects of climate change. Such investments will typically feature one or more of the following characteristics:

· long-term, predictable cash flows, which may be wholly or partially inflation-linked cash flows;

· long-term contracts or stable and well-proven regulatory and legal frameworks; or

· well-established technologies, and demonstrable operational performance

JLEN's aim is to provide investors with a sustainable, progressive dividend per share, paid quarterly and to preserve the capital value of the portfolio over the long term on a real basis. The target dividend for the year to 31 March 2023 is 7.14 pence per share1. The dividend is payable quarterly.

Further details of the Company can be found on its website www.jlen.com

LEI: 213800JWJN54TFBMBI68

(1) These are targets only and not profit forecasts. There can be no assurance that these targets will be met or that the Company will make any distributions at all.