Green Investment Group invests in Covanta's Dublin waste-to-energy facility
UK-headed Green Investment Group Ltd (GIG), part of Macquarie Group (Macquarie), has announced that it has entered into a partnership arrangement with Covanta Holding Corporation (Covanta) to jointly develop, fund and own new waste-to-energy (WTE) projects in the UK and Ireland.
GIG has underscored its commitment to the partnership by agreeing to invest EUR 136 million in a 50 percent stake in Covanta’s newly operational Dublin Waste-to-Energy Facility in Ireland. The plant, located at Dublin Port, is capable of processing at least 600 000 tonnes of residual municipal solid waste (MSW) annually.
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 of operations in 2018, the state-of-the-art facility will help ensure Ireland continues to meet its landfill diversion targets, said Edward Northam, Head of GIG in Europe.
According to a statement, 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. The Dublin investment is expected to complete in the first quarter of 2018, subject to approvals.
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 1.49 GW of renewable energy.
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, said Steve Jones, President and CEO, Covanta.
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 GBP 1 billion in facilities ranging from small-scale anaerobic digestion (AD) 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.