The Netherlands-headed waste-derived alternative fuel producer N+P Group B.V. (N+P) has announced that it has acquired a Material Recycling Facility (MRF) in South-East London, the UK with the capacity to process up 360 000 tonnes-per annum of recyclables. The deal is part of N+P's plan to expand its strategic footprint in the country.
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N+P has acquired Crayford Material Recycling Facility (MRF) in South-East London from Viridor Ltd, one of the UK’s leading recycling, resources, and waste management companies. The value of the transaction has not been disclosed.
We are delighted that N+P are the new owners of Crayford MRF. With this sale, we will be able to continue Viridor’s strategy of growing the core areas of our business, including our Energy Recovery and Polymers Reprocessing, while pushing ahead with our plans to be net-zero by 2040, said Michael French, Chief Commercial Officer at Viridor.
Processing up to 330 000 tonnes annually, Crayford MRF is one of the largest and most efficient materials recycling facilities in the UK, employing up to 260 people. It processes a large part of the Dry Mixed Recyclables from Greater London, the South, and the South-East.
N+P’s rationale for acquiring the London location is driven by the company’s desire to expand production in locations throughout the UK and diversify its activities. Ultimately, having both an alternative fuel production location as well as an MRF operation at the same location optimizes the complete value chain for waste. N+P believes the non-recyclable waste fraction can play a significant role in the transition to cleaner future-proof energy sources, said Stijn Jennissen, Chief Commercial Officer at N+P.
Crayford MRF is the third site N+P has acquired since entering a strategic partnership with Mercuria Energy Trading (Mercuria) in April 2021, which has their continual investment into the business. Employee headcount has grown fourfold in this period.
We wish to thank the team at Crayford MRF for their hard work over recent years. We are determined to ensure a smooth transition and assist N+P Group in driving their business forward. We wish everyone at Crayford MRF the very best for the future, and we also wish to thank Crayford’s customers for their support over recent years, said Michael French.
The key driver of this rapid expansion is to accelerate the production of N+P’s patented non-recyclable waste-derived solid alternative fuel – branded as Subcoal as it is a direct replacement for coal in the production of cement, steel, and ceramics – which allows N+Ps industrial customers to significantly reduce their production costs and carbon footprint.
By investing in new alternative fuel production capacity at Crayford and Rotterdam, the Netherlands, the company benefits from significant synergies due to existing site infrastructure and the expertise of the onsite management teams while maintaining the sites existing recycling capabilities.
N+P’ plans to add 13 alternative fuel production plants to its operations in Europe by 2026, producing over 5 million tonnes of alternative fuels per year.
Mercuria has a strong interest in the development of alternative fuels as we seek to help customers in their transition away from coal. Our partnership with N+P is a key enabler of this strategy, with Subcoal providing a real alternative with substantial cost and environmental benefits. These acquisitions provide a strong foundation for N+Ps future growth, and we will continue to support them on their journey to increase their production of alternative fuels, said Jean-François Steels, VP of Energy Transition at Mercuria.
Increase capacity at Crayford
This strategy will see Crayford grow from receiving 330 000 tonnes of input material per year to over 500 000 tonnes. It is also expected to increase the number of employees to more than 300, and produce enough Subcoal to replace 136 000 tonnes of coal in the UK.
N+P Group has invested over GBP75 million (≈ EUR 89.5 million) in the UK in 2021, and plan to invest the same amount in 2022 to expand their strategic footprint in the UK. This is part of the company’s overall GBP200 million (≈ EUR 238.6 million) investment between 2021-2022.
N+P’s deep understanding of the waste and recycling industries have been key to their success so far, and we are delighted to be helping expand and grow their operations in the UK, ended Jean-François Steels.