Envir's new soil washing plant cost close to NOK 200 million and is a game-changer in the green transition. The owners praise Nordea for its support in realising the dream. A skilled team of advisers and good solutions made it possible.
The construction industry accounts for as much as 40% of all CO₂ emissions, 40% of energy consumption and 40% of waste worldwide. In Norway, 2.6 million tonnes of contaminated excavation material are disposed of at landfills. This is half of all waste from the building and construction industry. Only 1.1% of this is recycled.
Isn’t it possible to do this better?
“Yes, absolutely. Now we’re finally doing something about it,” says Kolbjørn Akervold, who is the general manager of the Bergen-based company Envir.
In Laksevåg, just outside Bergen city centre, the company has recently opened its new soil washing plant, which can receive and recycle as much as 150,000 tonnes of contaminated soil, sand and gravel a year. In total, up to NOK 200 million has been invested to get the plant up and running. In other words, a large investment, but it changes the entire premise for handling excavated material in the Bergen area.
“We used to be an intermediate station before the waste ended up at landfills. Now we recycle all soil that is biologically contaminated and 80% of soil that is chemically contaminated,” says Kolbjørn.
This makes Envir a world-leading player in the recycling of excavated material or soil.
On an international scale, Envir is a small company. Financial muscle is needed to realise such a large project. And to achieve this, Nordea has become an important partner. First to get the plant up and running, then to ensure healthy growth for the company going forward.
“We wouldn’t have achieved this without Nordea’s help. They had faith in us as well as the concept and understood the business idea. They’re simply really good people who are very nice to work with,” says Rune Kristoffersen, one of the owners of Envir.
Lena Moe is part of the Nordea team working with Envir from the bank’s financial centre in central Bergen, both as their relationship manager and manager responsible for sustainability. She says that there is a certain risk involved for the bank when undertaking investments of this size, but that they were convinced by Envir's business model.
“Their model has made sustainability profitable. It is built around the opportunities of the green transition. Envir is a very good example of this. They shut down all operations for almost 10 months to build a new plant and took on large costs, but we have great faith in what they’re doing and have helped finance future cash flows,” says Lena.
We wouldn’t have achieved this without Nordea’s help. They had faith in us as well as the concept and understood the business idea. They’re simply really good people who are very nice to work with.
Her colleague at Nordea, Tone Sundal, Head of Business Banking Unit in Norway, says that it is important for Nordea to be involved in supporting local businesses. In this case in Bergen, but Envir is an example of what kind of partners the bank wants around the country.
"Envir’s owners are passionate about the future and sustainability. Although Nordea is a bank with substantial capital and an international presence, we’re also a local bank. We have a good ability to highlight and see the opportunities of players like Envir."
Earlier this year, Envir was finally able to open the new plant, which is the only one in Norway that handles both biologically and chemically contaminated soil.
"What’s the difference?"
"Biologically contaminated soil is simply soil with alien plant species, such as garden plants that have been introduced in recent decades. They spread extremely fast and take over species that grow naturally. This soil is steamed and can then be used in nature again, now completely free of alien plant species," says Kolbjørn.
Envir’s general manager goes on to say that it takes nature as much as 1000 years to create one centimetre of good topsoil. In other words, it means that the soil Envir steams and recycles is an extremely valuable resource.
"Soil with alien plant species that comes to us means soil out. This is brown gold because good quality soil takes a very long time to make."
When chemically contaminated soil is delivered to Envir, it has to go through a complicated process. First, Envir tests the material in a laboratory before it is washed and cleaned. When recycled, it can be used as sand, shingle and crushed stone, says Kolbjørn and adds:
"Other plants worldwide have an average of up to 50-60%, but we have a recycling average of 80% of chemically contaminated material."
Rune says that the reception in the market has been very good after Envir opened the new plant outside Bergen.
"We’ve had visits from many customers and no one has left without stars in their eyes. Many were sceptical about whether we would achieve this, but now that the plant has opened, Nordea is among the first that we want to thank," he says happily.
Nordea concluded that a solution with leasing of equipment was ideal for Envir because it requires less capital. This means that Nordea Finance has purchased, among other things, the machines used for steaming and washing soil.
"We’re working to find financing that is ideal for different companies, and leasing was very beneficial for Envir," says Lena.
Tone adds: "Nordea offers unique opportunities. Since we’re a large Nordic bank, we have a very good pool of competencies, but we can adapt it to any local business."
How do you map different companies to find solutions that are specifically suitable for them?
"Initially, we have a meeting to get to know each other and gain an understanding of the business. If we want to proceed, we involve analysts to conduct a financial assessment and determine the type of financial solution that suits the specific case," says Tone.
She says that Nordea is committed to good customer care and customer relationships that extend over many years.
"To achieve this, we must be sharp in terms of delivery and fees and charges and, not least, be highly competent. It’s something we have succeeded with."
Rune says Envir has a burning ambition to be an important part of the green transition in Norway.
"It’s something everyone must be involved in, from politicians via bureaucrats and authorities to banks, contractors and consumers. We hope more plants like ours will open, and we would like to help others."
He concludes by telling a little about projects in their own local area where the plant in Laksevåg can and should play an important role.
"We’re quite excited about what the municipality will do. There are several gigantic projects, including the new route for the Light Rail from Bergen city centre to Åsane, which will mean a lot of excavation," he says.
Envir is ready to receive 1,000 tonnes of soil, sand and gravel – every single day.