Alexandra Watson
Posted on 15 Sep 2017

Michelmores advises Downing LLP on £15.3m sale of Vulcan Renewables to JLEN

Michelmores' Energy team has advised Downing LLP on the sale of Vulcan Renewables Ltd by Downing Venture Capital Trusts and Future Biogas to JLEN, the listed environmental infrastructure fund. The acquisition is JLEN's first investment in the anaerobic digestion sector. The sale was for a total consideration of £15.3m, including working capital.

Alexandra Watson, Partner in the Energy team led the project with support from Philip Parrott, Associate in the Real Estate team. 

Alexandra Watson said:

"We are delighted to support long-standing client Downing on this strategic disposal. As a team we are very busy with secondary market activity in the energy sector at the moment, as investors look for exits and assets are being refinanced."

Michael Hughes, Partner at Downing LLP said:

"The sale of Vulcan Renewables delivered a positive outcome for the Downing VCTs in a segment of renewable energy where there has hitherto been limited transaction activity. It was a pleasure to work with Michelmores on the sale and we look forward to continuing our strong partnership within the energy sector."

The plant, located in Hatfield Woodhouse near Doncaster, was commissioned in October 2013, and was one of the first commercial biogas-to-grid projects in the UK. It has a capacity of 5MWth and predominantly produces biomethane. In addition, the plant also has a 0.5MWe combined heat and power (CHP) engine and is accredited under the Renewable Heat Incentive (RHI) and Feed-in-Tariff (FiT). The Downing Venture Capital Trusts provided the original funding into the business.