TIDMJLEN
RNS Number : 6408H
Jlen Environmental Assets Grp
04 December 2020
4 December 2020
JLEN Environmental Assets Group Limited
("JLEN" or the "Company")
Acquisition of a portfolio of biomethane refuelling stations for
Compressed Natural Gas vehicles
JLEN, the listed environmental infrastructure fund, is pleased
to announce that it has acquired a minority stake in a portfolio of
five Compressed Natural Gas ("CNG") refuelling stations for heavy
goods vehicles ("HGVs"), located in the UK. The investment has been
made alongside other Foresight funds and the developer and operator
of the stations, CNG Fuels Limited ("CNG Fuels"). JLEN will also
contribute to a funding line to fund the construction of a further
pipeline of CNG refuelling stations as part of a national network.
JLEN's total investment, including the initial acquisition, is
expected to be up to approximately GBP20m over the next two to five
years.
The transport sector is the largest source of carbon dioxide
emissions in the UK, accounting for 34 per cent in 2019[1]. Within
the transport sector HGVs produce 17% of road transport emissions
and 4.5% of total UK greenhouse gases ("GHGs").
Therefore, HGVs fuelled by biomethane (as generated by anaerobic
digestion plants) are the only commercially available, at-scale
solution to substantially reduce these emissions. HGVs fuelled with
100% biomethane offer a saving in GHG emissions of over 80% on a
"well-to-wheel" basis when compared to a similar diesel vehicle.
They also offer further environmental benefits such as lower noise
and lower particulate emissions[2].
The take-up of CNG HGVs fuelled by biomethane, therefore offers
fleet operators the opportunity to lower their emissions
substantially. CNG HGVs are also cheaper to run over a typical 5-7
year duty cycle, due in part to a favourable fuel duty position
compared to comparable diesel vehicles. The government has
committed to maintaining a clear advantage for gas powered vehicles
until 2032, as part of measures supporting the UK's target of net
zero emissions by 2050.
Revenues are earned from sales of biomethane fuel to customers
under contract, which include several of the largest fleet
operators in the UK. The commodity price of gas is passed through
to the customer, meaning that JLEN has no exposure to underlying
merchant gas prices.
The initial acquisition was funded by a draw-down under the
Company's revolving credit facility.
Richard Morse, Chairman of JLEN, said:
"We are pleased to make this investment into biomethane
refuelling infrastructure, helping to decarbonise one of the most
emission-intensive parts of the transport sector. We consider that
this investment combines the two pillars of delivering better
environmental performance and lower cost operations for customers,
thereby supporting our investment case and we look forward to
supporting the growth of a national biomethane refuelling
network."
This announcement is released by JLEN Environmental Assets Group
Limited and contains inside information for the purposes of Article
7 of the Market Abuse Regulation (EU) 596/2014 (MAR), and is
disclosed in accordance with the Company's obligations under
Article 17 of MAR.
For f urth er d etails contact:
Foresight Group +44 (0)20 3667 8100
Chris Tanner
Chris Holmes
Winterflood Investment Trusts +44 (0)20 3100 0000
Neil Langford
Chris Mills
Newgate Communications +44 (0)20 3757 6880
Elisabeth Cowell
Ian Silvera
Praxis Fund Services +44 (0)14 8175 5530
Matt Falla
For the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, the person responsible for releasing
this announcement is Matt Falla, Company Secretary.
About JLEN
JLEN's investment policy is to invest in environmental
infrastructure projects that have the benefit of long-term,
predictable, wholly or partially inflation-linked cash flows
supported by long-term contracts or stable regulatory
frameworks.
Environmental Infrastructure is defined by the Company as
infrastructure projects that utilise natural or waste resources or
support more environmentally-friendly approaches to economic
activity. This could involve the generation of renewable energy
(including solar, wind, hydropower and biomass technologies), the
supply and treatment of water, the treatment and processing of
waste, and projects that promote energy efficiency.
JLEN's aim is to provide investors with a sustainable,
progressive dividend per share, paid quarterly and to preserve the
capital value of the portfolio over the long term on a real basis.
The target dividend for the year to 31 March 2021 is 6.76 pence per
share.
Further details of the Company can be found on its website
www.jlen.com
[1] BEIS "2019 UK greenhouse gas emissions, provisional figures"
(26 March 2020)
[2] Source: CNG Fuels, Element Energy
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