Gasification technology supplier Energos has entered administration, citing cash flow issues caused by contractual disputes on two of its major contracts.
Matthew Wild and Lindsey Cooper of RSM Restructuring Advisory LLP were appointed Joint Administrators of Energos Ltd on Monday (11 July). The company employs 42 people at its head office in Warrington.
Ms Cooper said: “It’s early days, but we are working with our professional advisors to review the status of the current contracts with a view to maximising the returns to creditors.”
Energos’ gasification technology – which involves heating waste to extreme temperatures for greater efficiency – had previously been proven with varying degrees of efficiency at Waste Gas Technology’s former EfW facility on the Isle of Wight.
The company had four ongoing contracts for the installation of its technology at UK waste plants.
The facilities include Viridor’s Glasgow Recycling and Renewable Energy Centre and Amey’s Waste Recovery Park in Milton Keynes, both of which are scheduled to be completed this year.
Energos was also contracted to supply Resource Recovery Solutions’ Derby EfW – a joint venture between Shanks and construction contractor Interserve – as well as a new plant for the Isle of Wight, also to be delivered by Amey under its 25-year waste contract recently awarded by the council.
All four projects are still in the development phase and have yet to begin full operations.
According to RSM, directors at Energos made a financial decision to appoint the administrators following ‘contractual disputes with its ‘two main contractors’.
Viridor’s Glasgow centre has faced delays in recent months due to ‘technical issues’. Construction firm Interserve set aisde £70 million earlier in 2016 to address the ‘deterioration’ of its contact to build the plant (see letsrecycle.com story).
Allaying concerns over the future of the facility today, Martin Grey, head of media relations at Viridor, confirmed the facility is “well on its way” with commissioning having started in May.
He said: “We remain fully committed to delivering this £154 million world-class facility and we have the expertise to do so; as demonstrated by the delivery of six energy recovery facilities in the last 18 months.”