JLEN Environmental Assets Group (JLEN) has acquired a 100% equity stake in Cramlington Renewable Energy Developments (CRED), which owns a biomass combined heat and power (CHP) plant in the UK.
The acquisition of CRED, for an undisclosed amount, was made on a debt-free basis and represents JLEN’s first investment in a large-scale biomass CHP facility.
The plant is located north-west of the town of Cramlington in Northumberland and utilises proven technology to process a diversified biomass fuel mix, generating up to 28 MW of electrical power and 8 MW of heat for export via private wire to industrial customers and the grid.
The CHP plant has been fully operational since 2018 and earns revenues from the subsidy regimes of Renewable Obligations Certificates and Renewable Heat Incentive; the sale of electricity to the market; and the sale of heat and power via private wire. In aggregate, around 66% of CRED’s revenues are backed by long-term subsidies and an additional approximately 10% via long-term contracts.
“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 biomass energy assets already,” said Richard Morse, chairman of JLEN.
“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.”