Waste-to-energy: a greener environment for local communities
Through its expertise in environmental financing, Societe Generale is supporting waste-to-energy plants with tangible benefits for local communities.
Societe Generale is helping to finance a series of waste-to-energy plants in France and beyond that are not only addressing the waste treatment issue, but also generating energy. They are therefore significantly improving the environment for local communities.
In September, we closed the EUR 82m financing of a waste-to-energy plant near the city of Troyes, in the Aube department southeast of Paris. The plant will process 60,000 tonnes of waste annually from 2020, also generating up to 38,000 MWh of heat for households in Grand Troyes – covering 130,000 inhabitants of Troyes and the municipalities around, as well as 22,000 MWh of heat for nearby factories such as Michelin and Mefro Wheels, and 41,000 MWh of electricity sold on electricity network.
“The project is highly essential in Aube, but is also sustainable for the environment. Societe Generale has supported us through their experience in the sector and the ability to structure non-recourse financing.”Fabrice Joyen, Veolia’s Regional Director.
Currently only 31% of waste in Aube is recycled. From 2020, 45% will be recycled, 43% will generate energy and just 12% will go to landfill. The whole community will benefit from less pollution, as well as greener energy.
“The project is highly essential in Aube, but is also sustainable for the environment,” explained Fabrice Joyen, Veolia’s Regional Director, which will design, build, operate and maintain the plant for 25 years. “Societe Generale has supported us through their experience in the sector and the ability to structure non-recourse financing.”
In another recent transaction overseas, Societe Generale helped to finance the modernization of a 12,000 tonnes per year waste-to-energy plant on the French Caribbean island of Saint-Barthelemy. With the existing plant approaching capacity, this upmarket tourist resort badly needed a more efficient, modernized plant with a new compost platform and a sorting station in order to protect its reputation for cleanliness.
Operated by Tiru, a subsidiary of EDF, the plant treats all the island’s waste. The steam from waste combustion helps to power the island’s water desalination plant and generates up to ¾ of island’s drinkable water, a key resources in peak touristic season.
“Societe Generale CIB has long-standing experience in providing project finance for waste-to-energy deals,” said Laurent Chabot, Co-Head Infrastructure Finance Paris at Societe Generale. “Notably, we led the €220 million Valtom waste treatment plant financing for Suez in 2013. We have good knowledge of the French public sector, as well as understanding the financing needs of our strategic clients. Importantly, we provide financing without recourse to the sponsors.”