The infamous Poolbeg incinerator in Dublin is getting a new (partial) owner.
The Universities Superannuation Scheme (USS) – one of the biggest private pension funds in the UK – is taking a 50 per cent stake in the company behind the incinerator, Dublin Waste to Energy.
The deal sees USS buy the stake from Encyclis, formerly Covanta, which has been a shareholder in the incinerator’s parent company, with the sale expected to close this summer.
“USS, which has a strong track record of investment in infrastructure and energy assets, recognises the crucial role of Dublin Waste to Energy in Ireland’s waste management and baseload power generation,” Dublin Waste to Energy said.
“As a long-term investor in infrastructure, USS says the acquisition represents a strong fit with its mandate and is committed to contributing to the plant’s continued success,” it added.
Terms of the deal have not been formally disclosed, but a glance at the company’s most recent accounts show the business turned a €31.9 million profit on sales of €115.4 million. As energy prices rocket, those numbers are likely to increase.
Long a lightning rod for local opposition and environmental groups, the incinerator took 20 years from when it was first proposed to become operational almost a decade ago. It now burns more than 600,000 tonnes of rubbish per year.
Clearly it is paying its way for shareholders, which include Dublin City Council as part of a public-private partnership.