CASE STUDY

WASTE TO ENERGY

TOTAL INVESTMENT: EUR 225 M KEY FEATURES: LOW CARBON / CIRCULAR ECONOMY + SUPPORT FOR NEW TECHNOLOGIES, SMES AND LOCAL COMMUNITIES PRODUCTION CAPACITY: • BIOGAS/BIOMASS: 59 MWe + 4,000 NM3/H • PELLETS: 49 MW + 120,000 T/YR • MUNICIPAL WASTE TO ENERGY: 300,000 T/YR FROM WASTE TO ENERGY: INVESTING IN CIRCULAR ECONOMIES

Meridiam’s portfolio and electricity from municipal waste, contributions to national and to the purification of biogas at landfill international targets – such as the of Waste to Energy sites for domestic use as Renewable UN’s Sustainable Development Natural Gas. Goals, which are central to Meridiam’s projects is growing impact-oriented approach. They also and diversifying, but Several of Meridiam’s WTE projects have highly localised characteristics, are developing or operating plants benefiting local businesses and with certain common at more than one site. The portfolio communities. now includes WTE operations characteristics – at around 20 separate locations The Biokala Biomass project in total. Through a strategic launched recently in the Ivory Coast of transition to partnership with Evergaz , is a case in point. Through a 28- renewables, circular for instance, Meridiam has acquired year concession, Meridiam and its a 70% stake in the biogas assets partners in the project, EDF and economy principles platform BMP (Bio Methanisation SIFCA (an Ivorian agribusiness Partenaires), which operates nine group), will design, build, finance and support for new WTE plants; some generate biogas/ and operate a WTE plant fuelled technology, SMEs and NGV for commercial sale through from combustible biomass sourced methanization of agricultural waste from local plantations, to generate local communities. and others use cogeneration units to electricity via a 46MW thermal turn the biogas into electricity and power plant. heat as well. Projects converting Waste to Energy This will contribute significantly to (WTE) are growing in number as a Common to all of these projects is the Ivorian Government’s national significant area of focus of Meridiam’s a drive to aid transition from fossil plans for increasing the share business. There are now eight fuels to sources of renewable of renewables in the country’s separate investments in Meridiam’s energy, combined with numerous energy mix. Designed to be ‘multi- WTE portfolio, following financial other benefits. WTE projects are sectorial’, the project will also close being reached recently on directly in tune with Meridiam’s form an industrial base with jobs several new projects. Cursory glance central mission of investing in and economic benefits associated across the list shows considerable sustainable infrastructure with with the site’s energy generation diversity. Projects range from large positive impact. The very nature of and transmission by local utility scale WTE plants generating heat WTE operations not only secures provider CIE. Plus, it will boost the

FICAP/COGECAB (Pellets) P.2 Agrimaine Biogas Cogeneration local agricultural economy by aims of Agrimaine and we will are receiving a considerable valorising its waste as biomass work to maintain that initial spirit boost to the sustainability of their businesses and avoid 4.5 millions tons of CO2 of the project. Methanization ,” Marjorie says. over the lifetime of the project. slurry supplied from farms It is estimated that the project within 25km of the plant is still Getting local communities will increase revenues of more providing 99% of the feedstock involved, literally giving them than 12,000 local smallholders for producing biomethane, which some buy-in to help them by between 12% and 20% overall. is generating heat and electricity benefit from WTE projects, is an The direct link established with and revenue which is very reliable important aim. Two of Meridiam’s the smallholders will also be through long-term fixed tariffs,” WTE projects – Agrimaine Biogas leveraged to provide them access says Meridiam’s Agrimaine project Cogeneration and the Pellets/ to better and more sustainable manager, Marjorie Lemos. Black Pellets production facility agricultural practices. under development near Reims “The project has effectively(see WTE projects list) – have Biokala Biomass follows a developed a virtuous circular launched and closed successful similar model established at economy. As co-shareholders, the crowdfunding initiatives; around biogas sites in France. The farmers receive revenues from the one third of the €1m of investment Agrimaine Biogas Cogeneration plant and by supplying their waste in Agrimaine was raised from local project in an agricultural region as feedstock; and they now also people in Mayenne; and small of Western France, which get back a share of the plant’s investors have injected a total of reached financial closing indigestate as an ecologically €3.5m in FICAP. December 2017, was formed by friendly fertiliser, which is helping a partnership of Meridiam and to reduce their costs as well.” “We see this as a powerful tool AB2M, a company representing for anchoring projects into local local farmers. These 113 local There tends to be two main types communities. We want them farmers benefit from receiving of agricultural business in this to feel involved and to benefit revenue from sale of their part of France, Marjorie explains: financially via small investments,” organic waste to the project the large-scale and generally says Meridiam’s WTE project company Agrimaine and from economically successful arable board representative, Emmanuel a share of the commercial farms; and the smaller farming Walliser. sales of electricity and heat businesses which often find the generated. The extra revenue going a lot tougher. “Through “It’s also partially a de-risking for the local farmers amount to involvement as partners in approach,” Emmanuel adds. “We 7000 EUR/y/farmer. “Helping Agrimaine Biogas Cogeneration want local communities’ support local farmers was crucial to the project company, these farmers and backing for WTE projects

Short movie for Agrimaine crowlending

https://youtu.be/02vU6FU7d4w

P.3 introduced on their doorstep. – securing installation of two Commonly local challenges come Wagabox units at landfill sites about due to negative perceptions in Normandy and Occitanie and of industrial developments, but potentially a number more. WTE projects are actually highly positive, for local economies as well Wagabox units purify biomethane as transition to renewable energy produced by material decomposing from waste”. at landfill sites – combining existing technology with Waga’s innovative “Getting local people’s buy-in inverted distillation and freezing through small investments adds a technique. The result – Renewable further layer to the circularity of WTE Natural Gas (RNG) – is sold to gas projects, allowing communities a suppliers for domestic use through direct financial benefit. Initially 15-year fixed tariffs underwritten by we just wanted to test whether the French Government. The only crowdfunding would be possible, for the local grid (enough to civil engineering required is in the but we’ve been very pleased with power 30,000 homes), as well as preparation of the ground and a the results. We now have hundreds 130GWh of thermal energy for simple foundation. The Wagabox of local people actively involved in local industry including FICAP. unit is essentially plugged in and Agrimaine and FICAP.” left – remotely operated by Waga. “These technologies and processes There are further benefits to are not new. They are already “Wagabox units can be installed at Meridiam’s WTE investment proven, but the real innovation any landfill site, if they have good projects, not least the creation comes in combining them to access to the gas supply network of jobs in local communities. The create 100% renewable energy nearby. The size of production has FICAP facility and a neighbouring through circular economy to justify the cost, so they need COGECAB plant, for instance, are principles,” Emmanuel says. sufficient quantity of waste and gas expected to maintain 350 jobs Overall, it is estimated that the to treat, but generally speaking, as directly and through their supply combined FICAP-COGECAB long as a site has about 10-15 years chain in the Grand Est region. facility, located in the Pomacle- of waste, then installing Wagabox Bazancourt Bio-economy cluster will make economic sense for This is another project near Reims, will contribute to landfill operators,” says Meridiam’s demonstrating strong circular the reduction of nearly 230,000 Wagabox Project Manager, Thibault economy principles. When fully tonnes of CO2 equivalent carbon Simon. operational, the FICAP plant will emissions. manufacture white and black Meridiam has committed to a pellets from sustainable regional The technology is proven, but long-term partnership with Waga, wood sources for commercial Meridiam’s WTE investments investing jointly in a project SPV, industrial markets; and wood are helping to establish what is which is seeking further sites for waste to fuel the COGECAB a relatively new and burgeoning Wagabox and biogas purifying cogeneration power plant. industry. In partnership with the contracts with landfill site operators. COGECAB will generate 90GWh SME Waga Energy, Meridiam Nine Wagabox units are in use so per year of renewable electricity has invested €11m in Wagabox far, supplying more than 20,000

Waga

P.4 Gipuzkoa Olsztyn homes with RNG and preventing plant receives the solid municipal inhabitants) has developed the emission of 30,000 tonnes of waste collected by municipalities, through its public company CO2 from fossil fuelled energy. pre-treats it by separating MPEC a district heating system “The idea is to install more. We recyclable waste from unsorted to satisfy the demand for heat have a pipeline of around 30 residual waste, and dries the of its inhabitants. The project will potential sites with the right remainder which, together guarantee the heat supply to the criteria which are being studied with residual waste from other city after the coal-fired Michelin further. At least 20 have a fixed facilities, is incinerated. As a result Polska plant located in the area tariff secured for sale of the RNG of the incineration, electricity is ceases to supply heat to the and so just need agreement of produced: the energy generated district heating network in 2021. the landfill owner,” Thibault says. is enough to provide electrical power to more than 45,000 Furthermore, is under Wagabox is relatively new households. pressure to comply with the EU technology, but with the concept waste treatment regulations and proven, attraction and interest This asset is essential for the construction of this WtE is growing, Thibault adds. Gipuzkoa as there is no available plant handling 100,000 tons “Importantly, Wagabox creates landfill in the whole territory. Prior of municipal waste per annum renewable energy from landfill to the project, waste collected is a step towards adhering to methane, instead of polluting by the granting authorities was these regulations. The project by burning it or releasing it into transported outside the region. will deliver the energy recovered the atmosphere,” he says. “In the From an environmental from waste in the form of heat overall cycle of waste, it’s a really standpoint, the technical to the Municipal District Heating positive development and a game choices made by Meridiam and System and electric energy to changer for landfill operations.” its partners shall ensure that the power network. emissions (from fumes) are kept Another asset handling municipal at levels well below the current Through eight separate waste is the new Gipuzkoa limits set by the legislation. platforms, Meridiam is therefore Environmental Complex. The an active investor in Waste waste plant is situated near the A similar project is being to Energy projects in France, city of Donostia-San Sebastian developed by Meridiam in , Spain, Poland and the in the province of Gipuzkoa, Poland. Olsztyn, capital of the Ivory Coast in West Africa. in the Basque Country. With a Warmian-Masurian region, in 200,000 t annual capacity, the north-eastern Poland (270,000

Gipuzkoa

P.5 WASTE TO ENERGY INVESTMENT PROJECTS:

French biogas assets platform with Evergaz France: Investment €36.6m. 70% ownership of Evergaz assets platform BMP, plus 29% stake in Evergaz SA. BMP operates nine WTE biogas sites generating revenue from sale of biomethane, heat and electricity.

German biogas assets platform with Evergaz: Investment €21m. Meridiam and Evergaz SA have combined to form Evergaz Germany, which now owns and operates three biogas assets in Germany.

Agrimaine Biogas Cogeneration, France: Investment €24.9m. Cogeneration of heat and electricity from methanization of agricultural waste. Project company Agrimaine is owned by Meridiam (40%) and AB2M representing a group of 113 local farmers.

Gipuzkoa Environmental Complex, Spain: Investment €24.0m. In partnership with Urbaser, 35-year design, build, finance and operate concession for WTE plant, pre-treating, separating and recycling recyclable waste. Electricity generation through incineration of non-recyclable waste.

Olsztyn, WTE, Poland: Investment €35m. DBFO partnership with Urbaser, for WTE plant which will provide heat and electricity for 270,000 inhabitants of the city of Olsztyn, replacing current coal-fired facilities.

Biokala Biomass, Ivory Coast: Investment €24m. 28-year DBFO concession. Electricity generated from incineration of agricultural waste in a 46MW thermal power plant.

Integrated biofuel production and renewable energy generation, France: Investment €58m. In partnership with EDB (Européenne de Biomass), development, finance and operation of two inter- related facilities: FICAP produces white and black pellets for industrial markets; and supplies the second facility COGECAB, which produces renewable energy for industrial and domestic use.

Landfill biogas recovery, Wagabox, France: Investment €11m. Financed by Meridiam and Waga Energy, two new Wagabox units have been installed at landfill sites in Normandy and Occitanie, southern France.

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