JLEN takes on hydro projects through acquisition of NHHL

The FTSE 250 company said NHHL owns the equity in Northern Hydropower, which in turn holds the rights to two operational hydro projects, including a co-located operational battery storage system at one of the sites.

It said the assets are located in Yorkshire and Cornwall.

The acquisition represents the company's second investment into run-of-river hydropower and battery storage, which it said further increased the diversification profile of its portfolio of environmental infrastructure projects including wind, solar, anaerobic digestion, waste and wastewater.

NHHL had been acquired from a group of high-net-worth investors, which provided the original funding under an enterprise investment scheme.

The Yorkshire-based assets included Knottingley hydro, which is a 500kW dual turbine hydro project located on the River Aire, commissioned in October 2017, and a 1.2MW battery co-located at Knottingley, commissioned in January 2018.

In Cornwall, the asset is De Lank hydro, which is a 99kW hydro project located on the De Lank River, commissioned in October 2011.

Both hydro projects were accredited under the 20-year feed-in-tariff scheme.

JLEN said the acquisition increased the total capacity of renewable energy assets in its investment portfolio to 304.7 MW.

The acquisition was funded by a drawdown under the company's revolving credit facility.

“We are pleased to make our second investment into run-of-river hydro and battery storage, building upon our existing portfolio in this sector,” said chairman Richard Morse.

“As with our other hydro assets, these projects have a proven operational history, benefit from strong contractual revenues and broaden the diversification within the JLEN portfolio.”

At 0925 BST, shares in JLEN Environmental Assets Group were down 0.49% at 113.94p.