Encyclis and Biffa advance sustainable waste infrastructure with transition of Energy Recovery Facilities to Encyclis’ full ownership

Encyclis and Biffa have announced an agreement for Encyclis to acquire Biffa’s shares in two UK Energy-from-Waste assets that Encyclis operates in the UK. Encyclis’ acquisition of Biffa’s 50% stake in Newhurst Energy Recovery Facility, in Leicestershire, and 25% stake in the under-construction Protos Energy Recovery Facility, in Cheshire, gives the company full ownership of both facilities.

The Newhurst and Protos Energy Recovery Facilities are state-of-the-art plants designed to convert non-recyclable waste into energy and other resources, thereby reducing landfill and supporting the transition to a circular economy. By transferring ownership to Encyclis, a company renowned for its expertise in Energy-from-Waste, Biffa ensures that these facilities will continue to operate at the highest standards of environmental performance.

The agreement aligns with Biffa’s commitment to sustainability and its long-term strategy to focus on low-carbon waste management services while partnering with industry leaders to advance innovative solutions that move more waste up the carbon hierarchy, reducing waste and emissions. Encyclis’ acquisition of the Newhurst and Protos facilities strengthens their market presence in the UK Midlands, with a portfolio that also includes Rookery South ERF in Bedfordshire, and Walsall ERF, which is currently under construction in the West Midlands.

Biffa invested in both the Newhurst and Protos projects as a joint venture partner, providing a secure route for the safe and sustainable treatment of the residual waste it collected in those regions of the UK. The agreement, subject to lender approval, allows both companies to focus on their core strategic priorities, while maintaining their long-term relationship as key providers of vital waste management infrastructure and services in the UK.

Encyclis will continue to develop the facilities to provide a safe and sustainable treatment route for residual waste, including plans to deploy carbon capture and storage (CCS) at Protos ERF, while Biffa will continue as their anchor supplier with contracts for both facilities.

Encyclis CEO Owen Michaelson said: “This announcement marks the beginning of a new phase in our long-standing partnership with Biffa. As one of the UK’s leading pureplay Energy-from-Waste businesses, we are pleased to take full control of these two strategically important assets, which fulfil a critical public sanitation function as part of the UK’s waste management infrastructure. The acquisition strengthens our position as we continue to build out our portfolio of facilities in the UK Midlands and allows us to continue to work closely with Biffa who remain as one of our most important waste suppliers.”

Michael Topham, CEO of Biffa, said: “After a multi-year partnership, we are pleased to be selling our investment in the Newhurst and Protos Energy Recovery Facilities to Encyclis. Together we have delivered on our shared objective to create a cost-effective, lower carbon disposal route for residual waste. Moving forward Biffa’s focus is on further developing our core services and other innovative partnerships to help our customers reduce and decarbonise waste, while still supporting the development of the UK’s waste infrastructure. Strategically, Biffa will remain the cornerstone supplier to the Energy Recovery Facilities and is excited by the Protos carbon capture opportunity which will further benefit both us and our customers. “

Newhurst ERF recently reached its second full year of operations, having completed commissioning in May 2023. The facility is permitted to process up to 455,000 tonnes per year of domestic and commercial residual waste. This enables the facility to generate up to 40MW of baseload electricity, enough to power the equivalent of 80,000 homes. Plans to export heat from the facility to supply a proposed district heat network for Loughborough University and nearby businesses are also being developed.

Protos ERF is under construction near Ellesmere Port, Cheshire, is approaching completion and is currently in the cold commissioning phase. When operational, the facility is permitted to process up to 500,000 tonnes of residual waste each year, generating 37.5MW of baseload electricity. The plant is also poised to be the first in the UK to benefit from commercial-scale carbon capture deployment. As part of the HyNet North West industrial decarbonisation cluster, the Protos carbon capture project has been selected in the Department for Energy Security and Net Zero’s Track-1 carbon capture programme.