N+P to up Crayford capacity for alternative fuel production

N+P has today (20 January) confirmed its acquisition of Viridor’s Crayford materials recycling facility (MRF).  

N+P Crayford
N+P will produce Subcoal from contaminated recyclables at the MRF

As exclusively reported by letsrecycle.com last week, the deal was completed at the end of 2021 (see letsrecycle.com story).

Today’s confirmation shows that N+P will increase the capacity of the plant by around 170,000 tonnes, to 500,000 tonnes per year.

This will enable N+P to produce its patented Subcoal at the MRF from the non-recyclable waste fraction of the input.

Subcoal is a fuel which N+P says can work a direct replacement for coal in the production of cement, steel, and ceramic.

By investing in new alternative fuel production capacity at Crayford, the Dutch-owned company says it will benefit “from significant synergies due to existing site infrastructure and the expertise of the onsite management teams”.

The site’s existing recycling capabilities, where a large part of the dry recyclables from 28 councils across Greater London, the South, and South-East of UK are processed, will be maintained.

Stijn Jennissen, chief commercial officer at N+P, said: “N+P’s rationale for acquiring the London location is driven by the company’s desire to expand production in locations throughout the UK and diversify its activities.

“Ultimately, having both an alternative fuel production location as well as a MRF operation at the same location optimises the complete value chain for waste.

“N+P believes the non-recyclable waste fraction can play a significant role in the transition to cleaner future proof energy sources.”

Non-recyclable materials are currently sent for energy recovery elsewhere.

Expansion

The acquisition of the Crayford MRF was the third made by N+P since entering a strategic partnership with energy and commodity group Mercuria Energy Trading in April 2021.

N+P Crayford
The MRF processes recycling from a number of London and Kent councils

The company now plans to add 13 alternative fuel production plants to its operations in Europe by 2026, producing more than 5 million tonnes of alternative fuels per year.

Jean-François Steels, vice president of energy transition at Mercuria, said: “Mercuria has a strong interest in the development of alternative fuels as we seek to help customers in their transition away from coal.

“Our partnership with N+P is a key enabler of this strategy, with Subcoal providing a real alternative with substantial cost and environmental benefits.

“These acquisitions provide a strong foundation for N+P’s future growth, and we will continue to support them on their journey to increase their production of alternative fuels.

“N+P’s deep understanding of the waste and recycling industries have been key to their success so far, and we are delighted to be helping expand and grow their operations in the UK.”

Viridor

The sale of the Crayford MRF marked Viridor’s official exit from most of the recycling market, with its new owners KKR focusing on energy from waste and polymer reprocessing.

The other recycling assets in the Viridor portfolio were sold to Biffa, which did not acquire the Crayford MRF. It is thought this was due to competition concerns.

Michael French, chief commercial officer at Viridor, said: “We are delighted that N+P are the new owners of Crayford MRF. With this sale, we will be able to continue Viridor’s strategy of growing our core areas of our business, including our energy recovery and polymers reprocessing, while pushing ahead with our plans to be net zero by 2040.

“We wish to thank the team at Crayford MRF for their hard work over recent years. We are determined to ensure a smooth transition and assist N+P Group in driving their business forward.

“We wish everyone at Crayford MRF the very best for the future, and we also wish to thank Crayford’s customers for their support over recent years.”

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