Green Investment Group Limited (GIG), part of Macquarie Group (Macquarie), has entered into a partnership arrangement with Covanta Holding Corporation (Covanta) to jointly develop, fund and own new waste-to-energy projects in the UK and Ireland.
GIG has underscored its commitment to the partnership by agreeing to invest €136 million in a 50% stake in Covanta’s newly operational Dublin Waste-to-Energy Facility.
The plant, located at Dublin Port, is capable of processing at least 600,000 tonnes of residual waste annually, generates enough electricity to power approximately 80,000 homes and has the ability to provide district heating for up to 50,000 homes.
“The creation of this partnership and investment by GIG into the Dublin project allows us to fully fund an expanded UK development pipeline and enables successful international development and growth on a consistent and repeatable basis.”
Edward Northam, Head of GIG in Europe, said: “We are delighted to have entered into a partnership arrangement with Covanta, a world-leading owner and operator of waste-to-energy facilities. The projects developed under the partnership will extract energy from residual waste that would otherwise be lost to landfill, avoiding harmful methane emissions.
“We are also pleased to announce GIG’s first investment in the Republic of Ireland. Investing in Covanta’s landmark Dublin project is the first step in realising the potential of the partnership. As it enters its first full year in operations in 2018, the state-of-the-art facility will help ensure Ireland continues to meet its landfill diversion targets.”
Steve Jones, President and CEO, Covanta, said: “I am very excited about this strategic arrangement with a highly experienced and committed partner that understands the value of WtE assets and our development and operational capabilities.
“GIG brings substantial in-market expertise, relationships and credibility, with a tremendous track record and capabilities for sourcing, developing, executing and managing large-scale renewable infrastructure projects.
“The creation of this partnership and investment by GIG into the Dublin project allows us to fully fund an expanded UK development pipeline and enables successful international development and growth on a consistent and repeatable basis.
“GIG and Covanta have highly complementary skills and resources, making this a powerful partnership to execute a robust combined pipeline of opportunities.”
Covanta and GIG have identified up to six projects across the UK for potential inclusion in the partnership. Once realised, these projects are expected to treat approximately 2 million tonnes of residual waste per annum.
Covanta is a global owner and operator of waste-to-energy projects. It has a portfolio of 43 facilities capable of processing more than 18 million tonnes of waste per year while generating up to 1,499 MW of low-carbon energy.
GIG, now consolidated as Macquarie’s primary vehicle for principal investments in green projects in the UK and Europe, is one of the most active investors in the UK waste and bioenergy market. It has invested more than £1bn in facilities ranging from small-scale anaerobic digestion plants to large-scale waste-to-energy plants that are expected to divert hundreds of thousands of tonnes of residual waste from landfill every year.
The Dublin investment is expected to complete in the first quarter of 2018, subject to approvals.