US-headed Mercuria Energy Trading, part of Mercuria Energy Group Ltd (Mercuria), one of the world’s largest integrated energy and commodities companies, and the Netherlands-headed non-recyclable waste-derived alternative fuel producer N+P Group B.V. (N+P) have announced a strategic partnership that will inject significant growth capital in N+P and allow for the development of new alternative fuels production facilities.
As a part of the deal, Mercuria is acquiring “a strategic equity stake” in N+P. The Jennissen Family will continue to hold the majority of the shares in N+P while allowing for Mercuria’s stake to be increased in the near term.
The deal, the value of which has not been disclosed, is aligned with N+P and Mercuria’s larger corporate strategy of focusing on the global energy transition, which includes investing in high-quality alternative fuels produced from non-recyclable waste streams.
As we continue to invest in the global energy transition, we see our partnership with N+P as a way to provide cost-competitive decarbonization solutions to specific industrial sectors. For nearly three decades, N+P has demonstrated its ability to innovate and develop new alternative fuels. Its deep understanding of the waste and recycling industries has been key in N+P’s success so far, and this partnership will help expand and grow its operations said Jean-François Steels, VP of Energy Transition at Mercuria.
Founded in 1993, N+P has focused on decarbonizing the production processes of large energy-consuming industries globally. N+P uses non-recyclable waste fractions that would otherwise be landfilled or incinerated as feedstock to produce alternative fuels.
By switching to fuels produced by N+P, these industries can not only reduce their costs prices but also benefit from significant CO2 savings and contribute to landfill diversion. It also provides various industries with new incentives on how to best reduce their carbon footprint.
We have been working very hard in the last few months, to get the agreements with Mercuria in place. We are happy and proud that we have managed to find a partner like Mercuria, who shares our ambitious goal to grow and contribute to the development of our markets. We are looking forward to jointly realizing these ambitious targets in the coming years, commented Stijn Jennissen, Chief Commercial Officer at N+P.
White & Case LLP, Brachers LLP, and Deloitte acted as advisors to N+P, Freshfields Bruckhaus Deringer has acted as advisor to Mercuria.
Our role advising N+P Group on this important transaction is a great example of how White & Case supports fast-growth companies as they progress their ambitious growth targets, commented Ian Bagshaw, Global Co-Head of Private Equity of White & Case.
Increase capacity with new plants
Over the next five years, N+P intends to significantly increase the number of production plants, including global expansion catalyzed via synergies with Mercuria’s global trading platform. N+P expects to announce the development of the first new plants in the coming months.
In parallel to a rapid expansion of alternative fuel production facilities, N+P is also aiming to grow the legacy business of bridging waste to value with waste-to-energy feedstock trading and development and supply of alternative raw materials, in which the Jennissen family has almost 30 years of experience.
Together with N+P’s decades of experience in waste trading and optimization, and our market access and risk management expertise, we believe this partnership will positively contribute to the global energy transition. We look forward to working with the N+P team to further deliver capital support and optimization as we collaborate to grow and expand the business, said David Haughie, Managing Director of Principal Investments at Mercuria.