enfinium is a key player in the UK energy from waste (EfW) space that the infrastructure community is well acquainted with – but it scooped the IJInvestor Award for Asset Performance based on a stellar submission.

The judges were (largely) of one voice when it came to this category, impressed by the submission for enfinium which bills itself the largest pure-play EfW business in the UK providing sustainable waste treatment solutions.

It was formed through the acquisitions of Multifuel Energy and Wheelabrator UK and it owns 6 facilities, of which 4 which are operational (Ferrybridge 1, Ferrybridge 2, Kemsley and Parc Adfer) and a further 2 under construction (Skelton Grange and Kelvin).

The combined portfolio has a total waste capacity of 2.3 million tonnes per year and a total power capacity of 265MW – enough to power 500k homes.

The company achieved outstanding operational and financial results in its first year under Igneo's ownership… despite significant changes in the business, most notably the integration of 2 companies into 1 single operating group.

enfinium reached financial close on 2 development projects, totaling an investment of £1 billion and adding £90 million EBITDA once operational. Actual EBITDA in 2021 was around 30% above the Igneo investment case.

Much of the submission focused on the recent evolution of enfinium which in October 2020 saw Igneo enter into a binding agreement to acquire from SSE a 50% stake in Multifuel Energy, a 50:50 JV partnership between SSE and Wheelabrator UK.

This move was followed in December 2020 by a successful outcome on the Multifuel Energy transaction where Igneo entered into a binding agreement to acquire Wheelabrator UK from Macquarie Infrastructure Partners. The end result of these 2 transaction was to acquire the remaining 50% in the JV as well as the other assets within Wheelabrator UK’s portfolio.

Bringing it up to date – and into the IJInvestor Awards judging period – in May 2021, the company publicly announced the integration of the Multifuel Energy and Wheelabrator UK businesses into a single operating group, rebranding it enfinium.

The deal value of the transactions was around £3 billion, funded by a mix of debt and equity. Igneo secured a financing package of £1.6 billion.

As to what swung the judging panel towards enfinium for the asset performance award, it a combination of factors and financial activity that swung them over.

Part of this was enfinium reaching financial close on Skelton Grange (July 2021) and Kelvin (November 2021), with funding costs for the 2 projects amounting to £845 million.

But they were influenced also by enfinium successfully establishing in early December 2021 a new BBB-rated debt platform and raised £1.9 billion of associated facilities at highly attractive pricing.

The refinancing was the largest green accredited refi in 2021, consisting US-based institutional lenders and banks. It marks the first time that US private placement lenders have provided long-term debt financing for a pure-play EfW operator in Europe.

This process has increased the breadth of funding options available to owners and operators of EfW plants in Europe and opens up new funding sources for EfW projects.

The 26-year tenor for the institutional tranche is also the longest tenor achieved to date in the renewables sector in Europe.

Meanwhile, on the ground, enfinium impressed the judges as all its facilities use advanced environmental control systems and air emissions are below limits of the forthcoming EU Best Available Techniques reference documents.

Beyond that, Ferrybridge 1 and Ferrybridge 2 have a state-of-the-art incinerated bottom ash (IBA) facility located next to them, which is operated by Blue Phoenix under a 15-year contract.

This facility provides 100% recycling of IBA from Ferrybridge plants with an above 90% metals recovery rate… no IBA is diverted to landfill.

Similarly, Kemsley and Parc Adfer also have 100% of their IBA recycled or reused.