B&W expands waste-to-energy business with acquisition
Babcock & Wilcox Enterprises, Inc. (B&W) has signed a definitive agreement to acquire VODA A/S, a leading multi-brand aftermarket parts and service provider for the waste-to-energy and biomass-to-energy markets based in Vejen, Denmark. The transaction is targeted to close at the end of October 2021, following the satisfaction of customary closing conditions, including regulatory review in Denmark.
Based in Akron, Ohio, U.S.A., Babcock & Wilcox is a global leader in energy and environmental technologies and services for the power and industrial markets. VODA A/S focuses on energy producing incineration plants including waste-to-energy, biomass-to-energy or other fuels, providing service, engineering services, spare parts, as well as general outage support and management.
B&W Renewable Service
B&W will form B&W Renewable Service to integrate the VODA A/S and B&W Vølund aftermarket services businesses. This will serve as B&W’s platform for its renewable service business in Europe, significantly strengthening and expanding its ability to serve existing and new customers throughout this market, including for B&W-supplied and competitors’ technology. B&W Renewable Service will be led by VODA’s Chief Executive Officer, Christopher Nysted Sørensen.
“This strategic acquisition brings together B&W’s and VODA’s strengths and creates a solid foundation to further expand our service business in Europe’s fast-growing renewable energy market,” said Kenneth Young, B&W chairman and chief executive officer. “Combining B&W’s financial strength, engineering capabilities and proven experience as an original equipment provider and service company with the capabilities and expertise of VODA creates a dynamic team ready to work together to serve our customers.”
“VODA has grown substantially over the last three years and has built a reputation for providing customer-focused, market-driven service and solutions. This transaction will set the foundation for future growth and new possibilities for customers and our employees. We are excited and proud to be given this opportunity to expand further and to work together as part of B&W Renewable Service,” said VODA CEO Christopher Nysted Sørensen.
Waste-to-energy projects in East Asia
In related news, Babcock & Wilcox announced that its B&W Renewable segment has received an award for more than USD38 million to supply waste-to-energy technologies for municipal waste projects in East Asia.
B&W Renewable will design, manufacture and supply its Vølund DynaGrate® combustion grates and provide technical site services, as well as designs for the plants’ fuel-feeding and ash-removal equipment. B&W also will supply a highly efficient, advanced waste-to-energy boiler under a technology license. The facilities will be capable of processing approximately 2 million tons of municipal waste annually.
“As Asia’s need for electricity grows and urban centers look for more efficient and climate-conscious ways to deal with municipal waste, we expect waste-to-energy to play an increasing and important role in the region’s energy mix,” said B&W Chief Operating Officer Jimmy Morgan. “This directly aligns with our organic growth strategy and operational expansion within the Asia-Pacific region.”