Pennon Group expects significant earnings growth from its energy from waste business.
Posting half year results, the firm increased profit after tax by 26% to £112m, driven by higher customer demand for water and back office savings from the integration Bournemouth Water as well as high availability of Viridor’s energy from waste facilities.
The company currently operates waste facilities with 178MW of power generation capacity. Three new facilities coming on stream will increase that to 242MW next year and 272MW by 2021.
Viridor said availability of its existing energy from waste facilities had exceed 90% for the period and the assets were outperforming base case assumptions.
The group’s business water retail unit, Pennon Water Services, made a £0.5m loss, but the result for the 80:20 joint venture with South Staffordshire Water takes into account £1.5m set up costs. The firm said it expected increased efficiencies during the second half of the year.