Aviva Investors is currently grappling with financial setbacks concerning its energy-from-waste initiatives. Two additional incinerator projects overseen by the investment arm are reportedly facing significant monetary losses. This follows earlier reports of a Jersey-regulated green infrastructure fund managed by Aviva, which experienced a staggering £500 million loss due to the failure of three biomass plants.
Investors Write Off Losses
Local authority pension funds, drawn in by promises of low-risk returns, have written off £368 million linked to facilities in Hull, Boston, and Barry. These plants fell into administration in 2024, leading to substantial financial repercussions for investors. Creditors, primarily Aviva Investors, claim they are owed £480 million, yet they anticipate recovering less than a penny for every pound.
Current Status of Facilities
- Plymouth Site: Currently mothballed and in the process of being sold to a third party.
- Hooton Bio Plant: Near Ellesmere Port, it has reported losses of £145 million since 2018, with debts mounting to £270 million in 2024.
Despite these challenges, Aviva emphasizes that the Hooton facility generates enough power for approximately 30,000 homes. Recent reports indicate that the director responsible for the troubled sites was replaced earlier this month.
Future Outlook
Aviva Investors confirmed no intention of seeking loan repayments from the Hooton site for the coming year, allowing for a potential recovery. The open-ended infrastructure fund that owns these facilities is currently being wound down. A spokesperson for Aviva mentioned that the fund has “generated positive returns for investors since its inception” and reassured that shareholders have not incurred any losses.
