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 per cent 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.
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 renewable 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 £1 billion 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.
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.
Notes to editors
About Green Investment Group Limited (GIG)
Green Investment Group is a specialist in green infrastructure principal investment, project delivery and the management of portfolio assets, and related services. Its track record, expertise and capability make it a global leader in green investment, dedicated to supporting the growth of the global green economy.
The business was launched initially by the UK Government in 2012 as the first institution of its type in the world. The organisation was acquired by the diversified financial group Macquarie Group Limited in 2017, creating one of Europe’s largest teams of dedicated green infrastructure investors, and now operates under the name Green Investment Group.
For more information, visit www.greeninvestmentgroup.com.
About Macquarie Group
Macquarie Group Limited (Macquarie) is a diversified financial group, providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. Founded in 1969, Macquarie employs 13,966 people in 27 countries. At 30 September 2017, Macquarie had assets under management of £277.2 billion.
For further information, visit www.macquarie.com.
Covanta is a world leader in providing sustainable waste and energy solutions. Annually, Covanta’s modern Energy-from-Waste facilities safely convert approximately 20 million tonnes of waste from municipalities and businesses into clean, renewable electricity to power one million homes and recycle approximately 500,000 tonnes of metal. Through a vast network of treatment and recycling facilities, Covanta also provides comprehensive industrial material management services to companies seeking solutions to some of today’s most complex environmental challenges.
For more information, visit www.covanta.com.