Industry: Energy Related Services
Investment Type: Buy-out
ENC Energy is a Portuguese company present in the landfill gas (LFG) sector, providing engineering, Engineering, Procurement and Construction (EPC), as well as operation and maintenance (O&M) services. Furthermore, it is also present by investing in the installation and operation of landfill gas energy recovery units in addition to research and development (R&D) and equipment’s supply, besides technical assessments and consulting services.
Efficient gas capture from landfills, where waste is disposed, is one of the solutions to be implemented in a world of scarce and ever more expensive resources where waste is turning into a new source to be mined. Landfill gas (LFG), is a cost-competitive and mature energy technology, highly scalable, which allows stable energy production (24 hours/day and 365 days/year), lower network management costs, as well as positive direct and indirect environmental impacts.
In Brazil, population and gross domestic product (GDP) growth has led and will lead to an increase on electricity consumption, which together with the fact that its actual electricity energy matrix is highly dependent on hydro, provides the right setting for a decentralised mature technology such as LFG. Moreover, there is (i) a favourable regulatory framework (by demanding eradication of dumps and the building of new landfills) and (ii) despite the country’s size, the high-level geographic concentration in the municipal solid waste collection, provides an opportunity for geographic focus and economies of scale.
Fundo Inter-Risco II and Fundo Inter-Risco II CI joint investment in ENC Energy will allow the company to leverage its technical know-how and over 10 years expertise in the Portuguese LFG market and sustainably expand its activities to Brazil, bearing in mind the high potential of the Brazilian LFG market.
During 2018, ENC Energy concluded an equity increase in ENC Brasil by the international private equity fund Global Environment Fund and created the subsidiary ENC Nordeste in a joint venture with the Brazilian private equity fund Vinci Capital. These two operations will fund the development of ENC Energy’s portfolio in Brazil, becoming the reference player in the Brazilian LFG market.
In 2018, ENC Energy recorded consolidated revenues of Eur 10 Mn with 59 employees.
ENC Energy is a co-investment from Fundo Inter-Risco II and Fundo Inter-Risco II CI.