Portfolio
  • Atterologo.png
    Attero
    Netherlands

    Utilities

    Attero

    Attero owns two energy from waste (‘EfW’) plants, two sorting and pre-treatment facilities, six anaerobic digestion facilities, seven composting facilities and 10 landfills. The company processes waste from a diverse mix of domestic municipalities, commercial and industrial customers, as well as a number  of UK and Irish exporters.

    Attero has good revenue visibility due to its long-term contracts with customers. It is well positioned within the Dutch market with two of the largest and most efficient EfW plants in the country, strategically positioned with good port, road and rail access for both import and domestic waste supply. In addition, Attero is strongly positioned to benefit from favourable underlying trends in the European waste market, driven by EU directives targeting more recycling.

    Developments in the year

    Market supply and demand dynamics evolved favourably for most of the financial year, supporting our investment thesis and driving Attero’s strong performance. Market gate fees increased across all three of Attero’s main business lines. A tax of €32/ton on imported waste (to align with the existing tax on incinerated domestic waste) has taken effect from 1 January 2020. Following the renegotiation of most of its imported waste contracts, Attero expects that the immediate impact of the tax on its financial performance will be limited.

    In June 2019, Mel Kroon was appointed Chair of Attero. Mel was previously the CEO of TenneT, the Dutch electricity transmission grid operator. Mel brings a strong background in asset intensive industries, and an in-depth understanding of the energy sector. He also has experience of working across the private and public sectors in the Netherlands and Europe.

    Covid-19 has caused a drop in industrial and commercial waste, partly offset by an increase in household waste. Attero is protected from this to an extent thanks to its medium-term contracts for waste supply and its buffer of untreated waste, but we do anticipate a decline in Attero’s 2020 performance as a result of the pandemic.

    Investment rationale

    • Attractive opportunity in a new sector for the Company,  with favourable long-term dynamics
    • Attero operates two of the largest and best located waste treatment facilities in Western Europe, resulting in high efficiency and a low marginal cost
    • The European Union requires member states to reduce landfill use, increasing the volume of waste requiring incineration
    • Good revenue visibility from long-term waste supply contracts with municipalities, industrial customers, and waste exporters
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