Driving the Transition to Net Zero: Long-Term Investments for Sustainable Infrastructure
The transition to net zero in infrastructure is an ambitious but essential industry development. While we have supported our portfolio companies to make good progress decarbonising, there remains a long road ahead as the infrastructure sector accounts for 79% of all global greenhouse gas emissions.
At Igneo, we believe that a long-term investment horizon is the most appropriate approach to creating sustainable value in infrastructure investments. We have a genuinely long-term perspective and have held some of our investments for more than 25 years. It’s our belief that the energy transition is only possible if we support carbon-emitting businesses to decarbonise over the long term and overlooking these companies will hamper the overall global efforts.
enfinium overview
- Location: Europe
- Sector: Waste
- Risk Classification: Contracted
- Initial Acquisition Date: Feb 2021
- Governance: Sole
- Website: enfinium.co.uk
"With the UK alone generating alone generating around 220 million tonnes of waste each year and of this 27 million tonnes is residual household waste that cannot be recycled. "
Energy-from-waste in the UK
One area where this approach is critical is the energy-from-waste (EfW) sector with the UK alone generating around 220 million tonnes of waste each year2 of which 27 million tonnes is residual household waste that cannot be recycled2. The UK recycling and waste management sector has more than halved its green house gas (GHG) emissions over the last 30 years, primarily by recycling and phasing out landfills3. Yet, around 15 million tonnes of household waste items are still gathered around the UK annually and sent to incinerators4.
The UK government’s 2030 emission targets and 2050 net zero goals mean EfW plays a large part in supporting the transition. According to government figures, by 2042, even if the UK hits its ambitious recycling targets, over 17 million tonnes of unrecyclable waste will still be produced each year5. As a result, there is now a greater focus on developing new technologies, such as Carbon Capture and Storage (CCS), to decarbonise unrecyclable waste and generate carbon negative power.
A roadmap to decarbonisation
In May 2024, our UK portfolio company enfinium unveiled their net zero transition plan and five-step roadmap, targeting net zero emissions by 2033 and aiming to achieve up to 1.2 million tonnes of net carbon removals thereafter.
A significant part of this plan includes a £1.7 billion investment in carbon capture technology to decarbonise unrecyclable waste and generate over 90 MW of baseload, carbon-negative power. With the overall vision to transform the company into a carbon removals business powered by unrecyclable waste, delivering up to 1.2 million net tonnes of carbon removals per year by 2039.
Technical roadmap to net zero and beyond
As the world grapples with the dual challenges of waste management and the transition of energy production, enfinium's innovative approach is a standout example of how businesses can pursue their net zero goals.
"At Igneo, we believe that a long-term investment horizon is the most appropriate approach to creating sustainable value in infrastructure investments. We have a genuinely long-term perspective and have held some of our investments for more than 25 years."
enfinium's innovative approach to carbon capture
By installing Carbon Capture and Storage (CCS) technology at its sites, enfinium aims to permanently capture and store fossil and biogenic CO2 from the waste processed and achieve net carbon removals in the process . This initiative is the driving force behind the establishment of 'Decarbonisation Hubs' across the UK, which will provide dependable, locally sourced carbon-negative power to the electricity grid.
Pre-feasibility work has confirmed that carbon capture is technically feasible at all enfinium sites and viable technology exists that could be installed in around six years from development to operation. enfinium’s facilities would capture and remove carbon from both the fossil and the biogenic content of the waste processed.
Since emissions from the biogenic portion are climate-neutral, this means enfinium would be generating net carbon removals from the atmosphere, and could enable the company to produce and trade high-quality carbon removal credits. Once captured, the CO2 would be used in other industries or permanently stored for example in depleted oil and gas reservoirs in the North Sea.
In February 2024, enfinium’s carbon capture project for Ferrybridge 1 and 2 was designated a “Project of National Significance” by the UK Secretary of State for Energy Security and Net Zero, an important step in the planning and consenting programme for this site. enfinium has also signed a cooperation agreement with another of our portfolio companies: Navigator Terminals to explore the possibility of exporting captured CO2 from Ferrybridge via rail to the UK coast, which would be the first project of its kind in the UK.
"enfinium’s carbon capture project for Ferrybridge 1 and 2 was designated a “Project of National Significance” by the UK Secretary of State for Energy Security and Net Zero."6
This collaboration between our two portfolio companies demonstrates our collective long-standing commitment to responsible investment and provides a blueprint for how thoughtful investment and rigorous standards can lead to tangible and meaningful progress.
Important information
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