Switzerland-headed greentech major Kanadevia Inova AG (previously known as Hitachi Zosen Inova) has announced the signing of an agreement to acquire Encyclis Ireland Operations Ltd, the company which runs and maintains the Dublin Waste to Energy Facility (Dublin WTEF). Subject to regulatory approvals, Kanadevia Inova will further secure a 15 percent increase in the facility’s waste throughput while derisking the asset by transferring the O&M guarantees to its own balance sheet.
The agreement, the value of which has not been disclosed, is pending regulatory and stakeholder approvals, and is expected to close in the summer.
The Dublin Waste to Energy Facility (Dublin WTEF) currently diverts up to 600,000 tonnes of waste per year from landfill.
The agreement foresees the Swiss greentech company taking over the 38-year operations and maintenance (O&M) contract from Encyclis and it paves the way for an increase in the facility’s waste throughput capacity by 90,000 tonnes per year.
This transaction illustrates Kanadevia Inova’s unique capability to increase asset value for owners and investors by assuming O&M guarantees while offering engineered upgrades.
Around 60 Encyclis employees currently based at the Dublin plant will become part of Kanadevia Inova’s 3,200-strong global workforce, pending deal approval.
Built by Kanadevia Inova
Located on the Poolbeg peninsula, the Dublin WTEF came online in 2017 to serve the Greater Dublin Area.
Kanadevia Inova, then operating under its previous name, was the plant’s principal contractor for design, build, and commissioning.
Currently processing up to 600,000 tonnes of municipal solid waste (MSW) per year, the plant generates enough electricity to power 115,000 homes and is set to provide district heating for up to 50,000 households.
With the capacity upgrade, these numbers are set to climb further.
We are delighted to kick-start the process of transferring the O&M Dublin team and their outstanding value-added expertise into our operations in Europe. Kanadevia Inova’s ability to increase plant performance at a fraction of the corresponding investment for a new build and provide a guarantee through the O&M contract is a game-changer in the industry, said Bruno-Frederic Baudouin, CEO at Kanadevia Inova.
Encyclis, a leading pure-play Energy-from-Waste business in the UK & Ireland, will continue to own 50 percent of the Dublin WTEF alongside its co-shareholders.
In the interim, Encyclis will continue to operate the plant as it has for the past eight years.
Upon closing, a comprehensive handover program will be activated to maintain continuous standards of performance at Dublin WTEF.
Aligned with growth strategy
The agreement to acquire Encyclis Ireland Operations falls into line with Kanadevia Inova’s strategy, which is centred on strengthening its value chain and long-term customer base in key regions, adding resilience to the business.
Kanadevia Inova has grown its Systems & Service Solutions business considerably in recent times, both organically and through targeted acquisitions.
This strategic focus has enabled the company to increase recurrent business from 10 percent to 35 percent of overall revenue within four years, despite a doubling of its overall volume.
Over the same period, the company backlog has evolved from roughly two years of turnover to more than five years once this acquisition is completed, building long-term business visibility.
This strong evolution considerably enhances Kanadevia Inova’s resilience and is an essential cornerstone of its strategy.
The team at Dublin WTEF is highly qualified and will bring new capacities and perspectives to our plant lifecycle offering. At Kanadevia Inova, we make the customer the hero of the story, and we firmly believe that with this deal, it is precisely our customers who will benefit in the long run, said Thomas Feilenreiter, EVP of Systems & Service Solutions.
