JLEN Environmental to invest £26.7m into glasshouse construction project

14th Sep 2022 08:40

(Sharecast News) - Environment infrastructure fund JLEN Environmental Assets Group has agreed to invest as much as £26.7m into the building of a glasshouse construction project and the supply of heat and power from its adjacent anaerobic digestion plant.

JLEN Environmental said on Wednesday that it will make the investment via a combination of a senior secured loan for the construction of the glasshouse and a convertible loan and a minority equity stake in the operator to provide working capital.

The FTSE 250-listed group stated the investment offered "further diversification" for the company and was its first investment into the commercial glasshouse controlled environment space.

JLEN said the 2.1-hectare glasshouse will be built in the UK and will receive energy via a private wire at a discount to the import market price.

Production was expected to commence in 2023, with the site set to be capable of growing "a wide array of different horticultural products", generating "new diversified revenue streams" for JLEN and increasing revenues from its existing anaerobic digestion plant.

As of 0915 BST, JLEN shares were up 1.24% at 131.0p.

Reporting by Iain Gilbert at Sharecast.com