Environmental infrastructure fund JLEN has made its first investment in large biomass CHP, with the acquisition of Cramlington Renewable Energy Developments Ltd and its underlying contracts.
Cramlington owns a biomass CHP plant located to the north west of Cramlington in Northumberland. It uses a diversified biomass fuel mix to generate up to 28MW of electrical power and 8MW 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: Renewable Obligations Certificates and the Renewable Heat Incentive; the sale of electricity to the market; and the sale of heat and power via private wire to industrial customers. In aggregate, 66% of CRED’s revenues are backed by long-term subsidies and an additional 10% via long-term contracts.
JLEN’s said the acquisition was part of a strategy to diversify its portfolio and to secure strong inflation-linked revenue streams.
Richard Morse, Chairman of JLEN, said: “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 bioenergy assets already.
“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.”