Bloomberg News

U.K. Trash-to-Power Companies Seen as ‘Strong’ Targets for Asia

October 11, 2012

U.K. waste-to-energy producers will lure Asian buyers because their stable revenue streams provide a low-risk environment to learn about the technologies, according to Credit Suisse Group AG.

British companies that use waste such as old cooking oil and wood chips to produce transport fuel and power are a “strong target” for Asian businesses, Martin Catchpole, head of European renewables at the Swiss bank, said in an interview.

Clean-power output has expanded in the U.K. as the nation pursues a target to get 15 percent of energy from renewables by 2020, up from about 9.4 percent now. That’s piqued the interest of investors in Asia as utilities seek expertise in low-carbon power generation to fuel their growing economies. For U.K. businesses, that could bring funding at a time of tight credit.

“It’s not that we’re seeing asset owners and developers seeking to sell control of their respective businesses, but we’re seeing those companies seeking to bring in capital,” Catchpole said in London. There’s “significantly” more interest in northern Europe from non-Europeans as financing dries up in the south of the continent, he said.

The push toward sustainable fuels extends to the aviation industry, with Airbus SAS teaming up with China Petroleum & Chemical Corp. last month to develop cleaner jet fuel in China.

Renewable-energy acquisitions by Chinese and Japanese companies in western Europe have more than doubled to $796 million in the past two years from $366.5 million in the previous two years, according to data compiled by Bloomberg.

To contact the reporter responsible for this story: Louise Downing in London at Ldowning4@bloomberg.net

To contact the editor responsible for this story: Reed Landberg in London at landberg@bloomberg.net


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