Encyclis acquires Biffa’s shares in two Midlands ERFs

Biffa had a 50% stake in Newhurst in Leicestershire and a 25% stake in the under-construction Protos ERF in Cheshire.

The agreement is said to align with Biffa’s commitment to sustainability and its long-term strategy to focus on low-carbon waste management services, while the acquisition of the Newhurst and Protos facilities strengthens Encyclis’ market presence in the UK Midlands, also owning Rookery South ERF in Bedfordshire and Walsall ERF, which is currently under construction.

Biffa first invested in both the projects as a joint venture partner. The new agreement, subject to lender approval, allows both companies to focus on their core strategic priorities.

Encyclis has said it 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 at Protos ERF, while Biffa will continue as its anchor supplier with contracts for both facilities.

Encyclis CEO Owen Michaelson said: “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.”

‘Cost-effective, lower carbon’

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.”

Newhurst ERF recently reached its second full year of operations, having completed commissioning in May 2023. Plans to export heat from the facility to supply a proposed district heat network for Loughborough University and nearby businesses are also being developed.