CIP and FCC to build one of Europe’s largest energy-from-waste plants in UK

CIP and FCC Environment have reached financial close on the Lostock Sustainable Energy Plant. Once operational, it will be one of UK and Europe’s largest energy-from-waste (EfW) plants.

CIP and FCC Environment have reached financial close on the Lostock Sustainable Energy Plant. Once operational, it will be one of UK and Europe’s largest energy-from-waste (EfW) plants.

The £480m Lostock Sustainable Energy Plant project has been given the green light for construction by owners Copenhagen Infrastructure Partners (CIP) (60%) and FCC Environment (40%) after the project reached financial close today, March 26, 2019.

Located in Lostock, Northwest England, the EfW plant will process 600,000 tonnes of waste per annum, which will contribute to the UK government’s strategy to reduce landfill and export of waste. With a capacity of 60MW, the Lostock facility will be among the biggest EfW plants in the UK as well as Europe and is expected to power roughly 110,000 homes, offsetting more than 200,000 tonnes of CO2 per year. It will be bringing hundreds of local jobs to the area during construction as well as around 50 permanent jobs in the operations phase.

The EfW plant will be built on the land of Tata Chemicals Europe (TCE). The plant will through site upgrades and mutual offtake agreements for steam and sodium bicarbonate deliver significant new infrastructure for TCE’s soda ash plant and wider Lostock site and thereby underpin TCE operations and jobs for the long term.

FCC Environment, one of the UK’s leading resource and waste management businesses, will be responsible for operating the plant as O&M and fuel supplier and will source and deliver the 600,000 tonnes of waste that the plant will process each year.

“Today is a milestone for the waste treatment industry here in the UK which is facing a severe capacity gap for the treatment of unrecyclable residual waste” says FCC Environment Group Chief Executive Paul Taylor, and continues: “We already successfully operate a number of plants here in the UK generating some 102 MW of green energy with a new plant due to come on stream in Edinburgh later this summer. So this development forms an important part of our strategy to continuously invest in the waste related infrastructure that is crucial for this country’s ability to process waste and power homes across the UK both today and in the future. We also maintain our strategy to strengthen FCC’s UK position as EfW owner, supplier and UK operator.”

The two-boiler line project will be built by a consortium led by CNIM and today’s milestone marks the green light for them to initiate manufacturing and construction. The construction process will consist of two phases, starting with a 15-month enabling works program followed by a 3-year building phase including six months of commissioning. The plant is scheduled to commence operations in the end of second quarter of 2023.

“We are proud to be involved in the Lostock Sustainable Energy Plant on behalf of the CI III fund. We entered the project in the late development phase in September 2017 and have worked closely with the developers and FCC to reach financial close. We are excited to engage in the construction phase with CNIM, and to have formed a long-term strategic partnership with FCC – a leading waste management company with a long track record within waste and operations management. The project will convert waste into renewable energy and create hundreds of local jobs during the construction and operation phases. We look forward to utilizing our unique competences and experience from our existing thermal renewable energy projects, working closely with the local community and our partners,” says Christina Grumstrup Sørensen, Senior Partner at CIP.

About FCC Environment
FCC Environment is one of the UK’s leading recycling and waste management companies. FCC became FCC Environment in 2012 when Focsa Services (UK) and Waste Recycling Group (both part of global infrastructure, environmental services and energy group FCC Citizen Services) came together under this new brand.

Every day FCC Environment minimises the amount of waste that ends up in landfill by transforming it into valuable resources recycling 1.6m tonnes of waste and generate more than 102 MW of green energy.

FCC Environment operates in five key areas:

  • Business waste Solutions
  • Municipal services
  • Recycling and Composting
  • Green Energy
  • Waste processing

FCC Environment believe it is possible to be a thriving successful business while reducing our impact on the natural environment.

About CNIM
CNIM is an international specialist in waste treatment and energy-from-waste solutions, providing its services to local authorities, public service contractors, and waste treatment operators. CNIM designs, builds and operates turnkey plants for the treatment of household waste and non-hazardous commercial and industrial waste.

About Tata Chemicals Europe
Tata Chemicals Europe is one of Europe’s leading producers of sodium carbonate (soda ash), salt and sodium bicarbonate and other products, from plants in Cheshire, UK.

About Copenhagen Infrastructure Partners

Copenhagen Infrastructure Partners P/S (CIP) is a fund management company focused on energy infrastructure including offshore wind, onshore wind, solar PV, biomass and energy-from-waste, transmission and distribution, and other energy assets like reserve capacity and storage. CIP has approximately 110 employees and offices in Copenhagen, Taipei, New York, Tokyo, Utrecht, and London.

CIP manages six funds and has more than EUR 8 bn under management. CI I, CI A I and CI A II have PensionDanmark as founding- and sole investor. CI II has 19 Danish and international institutional investors and CI III has 42 institutional investors from the Nordics, Continental Europe, the UK, Israel, Asia, Australia, and multi-lateral organizations e.g. EIB. CI NMF I has 15 investors from the Nordics and Continental Europe.

CIP was founded in 2012 by senior executives from the energy industry in cooperation with Pension Denmark.