Located in south-east London, the SELCHP plant is co-owned and operated by Veolia, which will continue to operate the facility.
The stake was acquired from iCON Infrastructure Partners IV, L.P.
MEAG said the investment aligns with its infrastructure equity strategy, citing the plant’s long-term, inflation-linked waste supply contracts and revenues from electricity generation.
The company added that the facility benefits from stable waste volumes from its catchment area, providing predictable long-term cash flows.
Tobias Kerschbaumer, Senior Investment Manager at MEAG, commented: “Waste-to-energy assets sit at the intersection of essential infrastructure and the energy transition – they solve a waste management need while generating reliable power and heat.
“That combination of social utility and predictable cash flow is exactly what we look for in core infrastructure.”
MEAG manages around €371 billion in assets, including approximately €63 billion on behalf of external institutional and private investors.
David Pecher, Head of Infrastructure Equity Transactions at MEAG, added: “This acquisition is a strong fit for our infrastructure equity strategy: long-term contracted revenues, low correlation to broader market cycles, and a defensive risk profile that complements our existing portfolio.”
SELCHP Energy from Waste facility
The SELCHP facility has been operational since February 1994 and is capable of processing up to 440,000 tonnes of residual waste each year.
Operated by Veolia, the plant receives waste from a number of London boroughs, including Lewisham, Greenwich, Westminster and Bromley, diverting material from landfill while generating electricity for the National Grid.
The facility also plays an increasing role in London’s heat network infrastructure. Earlier this year, Veolia announced an expansion of its district heating network using heat recovered from the south London energy-from-waste plant.
Under a new 25-year agreement with property developer Greystar, Veolia will design, build and operate a district heating network serving six apartment blocks within the Bermondsey Project development.
The expansion is expected to supply a further 1,618 homes with low-carbon heat generated from the facility.
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