19th December 2023

Financial close achieved on Walsall Energy-from-Waste Facility

Encyclis has announced that the Walsall Energy-from-Waste (‘EfW’) Facility (‘Walsall’) in the West Midlands, England, has reached financial close and will commence construction early in the New Year.


Encyclis will build, own and operate the start-of-the-art facility. Hitachi Zosen Inova (HZI) will be the principal contractor. HZI is a global leader in EfW engineering, and the facility will be constructed under a turnkey engineering, procurement and construction (‘EPC’) contract.

The facility will utilise the latest combustion technology to turn up to 436,000 tonnes of the region’s non-recyclable residual waste every year into 49MWe of low carbon baseload electricity – enough to power around 90,000 homes.

The project has been supported by West Midlands Combined Authority, which provided an initial loan facility for enabling groundworks at the site ahead of financial close. The facility will provide much-needed social infrastructure in the West Midlands for the sustainable treatment of waste whilst supporting the region’s journey on the road to net-zero.

The primary fuel supply for the facility will come from a range of local and regional waste management companies. Encyclis has formed a supply network with multiple local and regional waste management companies, which will get direct access to this safe and efficient recovery outlet. It also provides a replacement facility for the region’s ageing fleet of first-generation incinerators, which are due to be retired over the coming years.

Confirming financial close, Owen Michaelson, Chief Executive of Encyclis, said Walsall would be an important addition to the company’s growing fleet of facilities in the UK and Ireland. It is the company’s fifth EfW project to reach financial close in five years.

Andrew Howie, the Development Director for Encyclis, said: “The development of Walsall demonstrates our sustained progress in executing on our full potential plan. It is a highly significant project in several ways. It will be the first of our facilities to be 100% owned and operated by Encyclis. To achieve that, we will be contracting directly with local and regional waste management companies to provide them and their ultimate local authority and business customers with a direct route into a long-term, sustainable waste treatment facility, diverting waste from landfill and exports. Today’s announcement confirms our commitment to support inward investment and create high skilled jobs in the regions.”

The project will see the regeneration of a disused industrial site in Fryers Road, Walsall. More than 300 workers will be employed during the construction period and there is a commitment to purchasing good and services locally where possible.  Once operational, the facility will create around 60 local, high-skilled jobs, and provide wider supply chain opportunities to support the region’s drive to be a hub of green innovation.

The development further strengthens Encyclis’ relationship with principal contractor HZI. Fabio Dinale, Executive VP of Business Development at HZI, said: “The Walsall Facility is HZI’s 19th UK project and HZI is delighted to be awarded this important contract by Encyclis. It demonstrates the trust our clients have in our experienced staff and proven technology capabilities. This Walsall plant will utilise HZI’s proven combustion technology.”

Initial work to prepare the site for construction has been carried out by Wolverhampton-based groundworks specialist McAuliffe.