Alexandra Watson
Posted on 13 Jul 2018

Michelmores advises Downing and Amersham Investment Management on £36m sale of anaerobic digestion assets to JLEN

Michelmores' Energy team has advised Downing and Amersham Investment Management on the sale of Egmere Energy Limited and Grange Farm Energy Limited to JLEN, the listed environmental infrastructure fund. The acquisition builds on JLEN's growing portfolio of anaerobic digestion projects and brings the total capacity of the renewable energy assets in the JLEN investment portfolio to 269.2MW. The sale was for a total consideration of £36m, including working capital and funded by a draw-down under JLEN's revolving credit facility.

Alexandra Watson, Partner in the Energy team led the project with support from Philip Parrott and Amy Tomlinson.

Alexandra Watson said:

"We are delighted to have advised the funds managed respectively by Downing and Amersham on their strategic disposals. Our in-depth knowledge of the energy sector means we are ideally placed to provide practical and timely advice in the secondary market as investments are realised."

The Egmere Energy AD plant is located in Egmere, North Norfolk and was commissioned in November 2014. The plant has a thermal capacity of c.5MW and predominantly produces biomethane to be injected to the national gas grid. In addition, the plant also has a 0.5MW CHP engine and is accredited under the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FiT) schemes. The Grange Farm Energy AD plant is located in Spridlington, Lincolnshire and was commissioned in December 2014. The plant has a thermal capacity of c.5MW and predominantly produces biomethane to be injected to the national gas grid. In addition, the plant also has a 0.5MW CHP engine and is accredited under the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FiT) schemes. The AD plants have been acquired from venture capital funds managed by Downing LLP, EIS funds managed by Amersham Investment Management Ltd and minority shareholders. Future Biogas Limited will continue to provide management, operations and maintenance services to the AD plants after the acquisition.