MVV, Semardel form Franco-German energy waste management venture

Tue May 6, 2014 7:28am EDT

Related Topics

* SEVE to be 50-50 owned by MVV and Semardel

* To help manage waste from energy plants in France

* 50 contracts due for tender, 6 mln tonnes of waste/year

FRANKFURT, May 6 (Reuters) - German utility MVV Energie and French group Semardel have formed a joint venture to manage energy-from-waste plants, eyeing a wave of contract renewals in France due in coming years.

SEVE, a 50-50 joint venture between the two groups, will help local French authorities manage energy-from-waste plants as well as ensure they meet regional requirements for energy supply, offering an alternative to private sector plant operators, MVV said in a statement on Tuesday.

"Around 50 local authorities are due to renew the operations management contracts at their energy-from-waste plants in the coming years. These contracts cover around 6 million tonnes of waste a year," MVV said.

According to data from consultancy Frost & Sullivan, the European waste-to-energy market is expected to grow to $4.94 billion in 2016, up from $4.22 billion in 2012.

MVV, which is 50.1-percent owned by the German city of Mannheim, is an experienced player in the field, operating eight energy-from-waste plants in Germany and one in the Czech Republic. It is currently building two new plants in Britain.

The group's waste management unit makes annual sales of 265 million euros ($368 million) and employs 460 in staff.

Semardel, 72-percent publicly owned, has 30 years of experience in waste management in France, employs 600 staff and makes annual sales of 80.9 million euros, up 30 percent over the last four years.

The European Waste Framework Directive has set a target of reducing the volume of landfill waste to 50 percent by the end of the decade.

($1 = 0.7205 Euros) (Reporting by Christoph Steitz; Editing by Marilyn Gerlach and Mark Potter)

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