Biffa reaches strategic milestone on UK waste-to-energy facility

U.K.-based Biffa, a leading sustainable waste management company, announced Dec. 1 that the company has reached financial close on the Protos waste-to-energy (WtE) facility in Cheshire, alongside its joint venture partners, Covanta Holding Corp., Morristown, New Jersey, and Macquarie’s Green Investment Group (GIG).

The facility, located near Ellesmere Port, will be a significant addition to the U.K.’s waste management infrastructure, and is the second such facility for Biffa, following the commencement of construction at the Newhurst WtE facility in Leicestershire.

According to Biffa, the new facility supports the government’s drive to both reduce reliance on landfill and treat more non-recyclable waste at home, decreasing the U.K.’s dependence on export.

The facility will provide 400,000 tons of annual treatment capacity for non-recyclable household and industrial and commercial (I&C) waste and will also be capable of generating 49 megawatts of low carbon electricity—enough to power around 90,000 homes.

Like the Newhurst project before it, the Protos project consortium benefits from Biffa’s expertise and scale in waste management and control of significant feedstocks with Covanta’s development and operational experience in WtE. Covanta will supply operations and maintenance services whilst Biffa will provide the fuel for the facility with over 60 percent of the feedstock sourced from Biffa’s own operations, providing a vital outlet for non-recyclable waste.

Construction of the facility will be led by a joint venture between Mytilineos S.A, Greece, and Standardkessell Baumgarte GmbH, Germany, both of whom have a long and successful track record of delivering infrastructure projects in the U.K. and around the world. The facility is expected to provide significant economic opportunities to the local and regional area, both during the three-year construction phase and upon its completion.

The total project construction cost, excluding financing costs, will be between £345 million and £355 million, with Biffa owning a 25 percent equity stake in the facility. As previously disclosed, Biffa’s financial commitment to the project will amount to £35 million, which will be invested over the coming three years from existing facilities.