John Laing Environmental pours more cash into Vulcan Renewables
By Josh White
Date: Friday 22 Jun 2018
(Sharecast News) - Environmental infrastructure fund John Laing Environmental Assets Group announced a further investment in the Vulcan Renewables anaerobic digestion (AD) plant on Friday.
The London-listed firm said the investment consisted of provision of funding of £8.5m to significantly expand the AD plant's biomethane generating capacity.
Vulcan Renewables was acquired by the company in August last year.
Its AD plant is located in Hatfield Woodhouse, nine miles northeast of Doncaster, and was commissioned in October 2013.
JLEN said the plant had a current capacity of 5MWth, and predominantly produced biomethane.
In addition, the plant also has a 0.5MWe CHP engine and was accredited under the renewable heat incentive (RHI) and feed-in-tariff (FiT).
The plant extension would be carried out by Future Biogas, JLEN's business partner in the AD sector and current service provider at the Vulcan site.
It said the works would involve converting the existing storage tank to a primary digester, providing for separate digestate storage; installing an additional biomethane upgrading unit; and associated engineering, electrical and civil works.
The construction works were expected to complete in late 2019.
Operations would continue throughout the period, with no expectation of significant downtime.
JLEN said its further investment in the Vulcan Renewables AD plant would be funded by a draw-down under its revolving credit facility.
"We are pleased with our initial investments in the anaerobic digestion sector, and this expansion project is a good opportunity to build out our capability at the Vulcan Renewables AD plant," said John Laing Environmental chairman Richard Morse.
"It represents our first investment in a construction project, and we have taken care to understand and limit the risks involved, including through the choice of Future Biogas as our delivery partner.
"We are looking forward to a successful delivery and enhanced revenues once completed."
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