Supported a utility company to ambitiously build its energy-from-waste generation capacity, enabling it to beat its own industry-leading targets.
Working in close collaboration with the client’s business venture team, we assessed the market opportunities and developed the compelling investment case to take an industry-leading role. The company reached its initial target energy production a year early and is at the forefront of its sector in this vital contributor to Net Zero.
The leadership team of this UK waste and water company put purpose at the core of its vision, and set ambitious targets across its green agenda, including 50% of its energy consumption to be self-generated by 2020. This built upon its early investments in Anaerobic Digestion, creating a potential competitive advantage as momentum developed in this area.
How big and profitable could the AD business be? And could it supply energy externally as well? What had to be in place for our client to succeed?
The client wanted to harness our expertise and objectivity while remaining co-creators of the strategy. Working in close collaboration with their business venture team, we explored the external market, competitors, regulation and subsidies, and developed a model of the future economics. We identified the range of opportunities worth pursuing, and defined our client’s right to win. For the priority opportunities we detailed the business case, specifying the investment required, risks and potential returns.
Given risks and time pressure, we shaped a nimble approach, starting with a small number of AD plants and expanding rapidly (and possibly through acquisition) once initial results proved favourable.
The company succeeded in hitting its own ambitious target a year early by reaching 50% of its own energy needs self-supplied from renewables. It has committed to 100% by 2030. And it continues to lead the sector, with multiple AD sites up and running, as well as wind and solar facilities, supplying energy externally as well as to its own operations.