Conducting Energy-from-Waste Due Diligence for Hooton Bio Power

Situation

Anthesis provided commercial due diligence for the construction of the Hooton Bio Power plant in Cheshire, a ground-breaking facility with the capacity to process 240,000 tonnes of waste annually, positioning it as one of the largest Energy-from-Waste (EfW) gasification plants in the UK.

Anthesis separately contributed to a £72 million acquisition of an EfW facility in Bridgwater, Somerset, by Equitix and Iona Capital, further solidifying its role in the evolving landscape of waste management.

Solution

For the Hooton Bio Power project, Anthesis offered comprehensive commercial feedstock due diligence services. The Anthesis team collaborated with investors, project developers, and feedstock suppliers. The services included a red flag report, detailed supplier assessments across multiple tiers of the feedstock supply chain, and a regional market evaluation to understand competitive pressures on feedstock gate fees. Anthesis also provided valuable insights into the proposed feedstock sourcing strategy, supply contracts, and gate fees to support the project’s financial close.

In the case of the £72 million acquisition in Bridgwater, Anthesis continued to demonstrate its proficiency in Energy from Waste projects. The Anthesis team facilitated the completion of the deal by delivering commercial feedstock due diligence services. This involved an initial red flag report, a review of the developer’s due diligence market report, a detailed supplier assessment covering various feedstock supply chain tiers, and a comprehensive fuel supply contract review. The comparison of feedstock supply arrangements against competitive pressures on gate fees provided a robust foundation for the project’s success.

Impact

The impact of Anthesis’ involvement in these projects has been significant. In the case of Hooton Bio Power, the plant, once operational, is set to generate around 200 gWh of electricity annually, contributing to sustainable energy production and powering over 50,000 homes. Anthesis’ services not only facilitated the successful completion of the project but also ensured a thorough understanding of the feedstock dynamics and competitive landscape.

Similarly, the £72 million acquisition of the EfW facility in Bridgwater represents a crucial step towards sustainable waste management. The 7.75MW Resource Recovery Facility, expected to be fully operational in 2021, will process 100,000 tonnes of commercial and municipal refuse derived fuel annually, significantly reducing landfill waste. Anthesis’ commercial feedstock due diligence services played a vital role in ensuring the viability and success of this environmentally impactful project.