The £1.64 million deal was announced last week after Estech Europe's former owners ReEnergy, revealed it would be winding up its operations.
However, the Herefordshire project has been hampered by lengthy legal disputes, and while the Court of Appeal gave the proposals the go-ahead in February, doubts still remain over securing contracts to provide waste for the plant (see letsrecycle.com story).
VT Group's business development director, Rob Dustan, told letsrecycle.com that the purchase of Estech provided “a technology that will enhance our overall market offering” and the company was now “reviewing” Estech's list of proposed projects.
“Hartlebury and Madley both present good opportunities and will be the subject of rigorous review,” he explained. “I am hopeful that a solution to both of these projects is forthcoming but at this time it is too early to pass judgement.”
The third proposed facility is a 150,000 tonne-a-year autoclave plant in Wakefield that it had already planned to build as part of a consortium with its new owner, VT Group, before the acquisition was announced.
The plant is part of VT Group's £700 million, 25-year plans for the Yorkshire council's waste management services, which it won preferred bidder status for last November (see letsrecycle.com story).
Speaking to letsrecycle.com, a spokesman for VT Group confirmed that the purchase of Estech, which was made through VT Group's wholly-owned subsidiary VT Environmental Engineering Limited, would “enhance our offering in Wakefield where we hope to sign a contract later this year”.
Commenting further on the Wakefield project, Mr Dustan added: “Wakefield is progressing towards Financial Close and remains on programme. The acquisition of Estech Europe has further strengthened our proposal to Wakefield MDC and provides us with greater control of the project delivery.”
While VT Group, which is based in Southampton, has traditionally been associated with civil and defence support services, the past few years have seen it diversify into areas such as communication and education.
Its status as preferred bidder for the Wakefield PFI represents its first step into waste management, and the purchase of Estech comes as the company looks to make a concerted move into the sector.
The company said: “The drive towards processing waste rather than sending it to a landfill has led to VT Group identifying this market as a potential source of new business, with existing opportunities estimated at a value of £1.2bn. VT has recently submitted a bid in Wakefield, and is now considering further opportunities.”
The future of ReEnergy now appears bleak, following the sale of its sole subsidiary.
In a statement, the company said: “The Directors are currently obtaining advice regarding the optimum manner for the orderly winding up of ReEnergy and for returning capital, after the costs of closure, to shareholders.”
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