A renewables specialist has made a multi-million investment in a plant in rural Fife that was developed to produce gas from chicken manure and other residues of the farming process.

The JLEN infrastructure fund has acquired a stake in the Peacehill Farm anaerobic digestion plant in an £11 million deal. The plant was developed on the farm run by the Forster family to provide an additional income stream and reduce energy costs.

The Peacehill plant produces biomethane for export to the national gas grid. It also includes a combined heat and power generator.

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Other farmers have invested in anaerobic digestion plants that can help reduce their reliance on potentially volatile commodity prices.

JLEN highlighted the appeal of investing in plants such as Peacehill, which benefit from support from subsidies that were introduced to encourage investment in renewable energy generating plants.

The investment company’s chairman Richard Morse said the Peacehill plant has a proven operational history and is supported by a high proportion of inflation-linked revenues backed by government subsidy regimes.

JLEN has also invested in seven agricultural anaerobic digestion plants in England. It says these inject renewable biogas into the main network and create renewable electricity for use on site.

The company’s portfolio includes the Dungavel windfarm in South Lanarkshire and Carscreugh wind farm in Dumfries & Galloway.

£104m windfarm deal reflects investor interest in Scottish assets 

The recent slump in equity markets following a long period of volatility may encourage others to invest in infrastructure assets from which they can generate steady long term returns.

JLEN says its policy is to invest in environmental infrastructure projects that have the benefit of predictable inflation-linked cashflows supported by long-term contracts or stable regulatory frameworks.

The fund is managed by the London-based Foresight investment group.

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