Aug 1, 2014

Waste Management Inc. Sells Wheelabrator Technologies for $1.94 Billion

Waste Management
2 min
Waste Management Inc. has sold its waste-to-energy business, Wheelabrator Technologies to an affiliate of Energy Capital Partners for $1.94 billion...

Waste Management Inc. has sold its waste-to-energy business, Wheelabrator Technologies to an affiliate of Energy Capital Partners for $1.94 billion.

Wheelabrator owns or operates 17 waste-to-energy facilities and four power producing facilities across the U.S. In total, their facilities process 7.5 million tons of waste and generate 853 MW of electricity. The subsidiary also operates four ash monofill landfills, three transfer stations, and an ongoing construction and development project in the UK. In 2013, Wheelabrator generated $845 million in revenue.

In addition to the sale, Waste Management will enter a long-term agreement to continue supplying waste to some of Wheelabrator’s facilities.

“This transaction aligns with our goal of driving shareholder value by maximizing our focus on our core business and reducing earnings volatility related to electricity sales,” President and CEO of Waste Management David P. Steiner said. “We look forward to a long-term partnership with ECP through our waste supply agreement.

Steiner expressed his gratitude to Wheelabrator’s employees, saying, “They made our waste-to-energy business successful, and we anticipate that the business will continue to be successful under ECP’s ownership.”

Energy Capital Partners was also excited about the deal, citing Wheelabrator’s talented employees and impressive track record.

“We believe Waste Management’s strong waste supply capabilities well complement ECP’s deep experience in power generation; and we look forward to continuing to provide Wheelabrator customers and partners with the same continued excellent service they have enjoyed under Waste Management’s ownership,” Tyler Reeder, a Partner in Energy Capital Partners, said.

The transaction is still subject to federal approval, but is expected to close later this year. 

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Apr 23, 2021

Drax advances biomass strategy with Pinnacle acquisition

Dominic Ellis
2 min
Drax is advancing biomass following Pinnacle acquisition it reported in a trading update

Drax' recently completed acquisition of Pinnacle more than doubles its sustainable biomass production capacity and significantly reduces its cost of production, it reported in a trading update.

The Group’s enlarged supply chain will have access to 4.9 million tonnes of operational capacity from 2022. Of this total, 2.9 million tonnes are available for Drax’s self-supply requirements in 2022, which will rise to 3.4 million tonnes in 2027.

The £424 million acquisition of the Canadian biomass pellet producer supports Drax' ambition to be carbon negative by 2030, using bioenergy with carbon capture and storage (BECCS) and will make a "significant contribution" in the UK cutting emissions by 78% by 2035 (click here).

Drax CEO Will Gardiner said its Q1 performance had been "robust", supported by the sale of Drax Generation Enterprise, which holds four CCGT power stations, to VPI Generation.

This summer Drax will undertake maintenance on its CfD(2) biomass unit, including a high-pressure turbine upgrade to reduce maintenance costs and improve thermal efficiency, contributing to lower generation costs for Drax Power Station.

In March, Drax secured Capacity Market agreements for its hydro and pumped storage assets worth around £10 million for delivery October 2024-September 2025.

The limitations on BECCS are not technology but supply, with every gigatonne of CO2 stored per year requiring approximately 30-40 million hectares of BECCS feedstock, according to the Global CCS Institute. Nonetheless, BECCS should be seen as an essential complement to the required, wide-scale deployment of CCS to meet climate change targets, it concludes.

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