Posted on: 16th Jul 2019
Spreading the risk with an aggregator
Andusia have been in the EfW export business from the beginning. Establishing themselves as the number one independent waste aggregator, achieving a Queen’s Award for Enterprise in International Trade in 2016. An aggregators strength is their ability to pull waste from a number of different sources, spreading risk of supply and enabling best value.
The value of aggregators was highlighted in ENDS waste and bioenergy’s recent article entitled ‘Gate fees will push EfW growth’. Discussing how UK EfW plants will play an increasing role in the UK’s energy mix, the article went on to look at the difficulties faced by developers of new EfW projects and how subsequently aggregators are the perfect solution to the fuel supply risk.
Although Andusia has been an established and successful RDF export business for over 7 years, the company has its eyes firmly focused on what will happen domestically. Andusia are currently in discussions with numerous UK developers regarding potential EfW facilities in various stages of development.
Building new EfW facilities is a long process. Developers need to acquire land, get planning permission, apply for permits, select technology, get funding and finally (and most importantly) source a constant supply of waste.Most new plants require a 10-year, fixed price, waste supply contract in order to gain investment. This fuel supply risk can lead developers to struggle to get the third-party financing they need, but this is where aggregators like Andusia come in.
Andusia Director, Steve Burton, explains:
“The developers of new EfW projects are not going to want to have to deal with dozens of suppliers, so they need somebody in the middle that can provide and hold liability.
The major companies won’t sign up as they will be supplying their own plants, so they look to an aggregator and that is where we can come in. We are proud of what we do and this shows in our work.”
Provided the aggregator is large enough and has a good credit-risk profile, they are the perfect solution for EfW operators. Working alongside aggregators, developers are able to secure waste supply contracts, spreading the risk and easing the process of attaining supply agreements. Aggregators, such as Andusia, are able to commit in the knowledge they can fulfil contracts with waste from a number of different waste suppliers.
Steve ends: “I think the UK is an emerging market, it just happens to be on our doorstep, it is just unusual that an export market would exist before the domestic market!”
Andusia are committed to supporting new UK infrastructure and are working with developers to bridge the gap between waste suppliers and plants. Contact us today!