Reviewed: 13th July 2016
A company which specialises in generating energy from waste materials has entered administration after a cash flow crisis took its toll on the business in recent weeks.
Energos Ltd has its headquarters at an office base in Warrington in the North West of England and employs a total of 42 people whose jobs are now in jeopardy.
The company’s business was based primarily around providing services and technologies designed to recover clean energy from waste via a process known as gasification.
However, administrators have explained that the company found itself faced with serious cash flow problems as a result of disputes with two of its main contractors.
Those two main contractors are reported to be Interserve, a major multinational support services and construction business, and Amey Cespa, for which Energos had agreed to build an “advanced conversion facility” in Milton Keynes.
Deals with both contractors are understood to have been worth millions of pounds and to form part of broader construction efforts involving tens of millions of pounds worth of investments.
Administrators appointed to manage Energos’ affairs and to maximise potential returns for its creditors in the coming weeks have explained that the problems faced by the business were brought about by “cash flow issues caused by disputes with their two main contractors”.
“It’s early days, but we are working with our professional advisors to review the status of the current contracts with a view to maximising the returns to creditors,” said Lindsey Cooper, one of the appointed administrators in a statement.
Energos received its first commission for a clean energy recovery plant in 1997, with the Warrington company’s technology having been deployed at a total of eight different plants in various parts of Europe since that time.
Its solutions are designed to convert non-hazardous commercial and industrial waste that cannot be recycled into clean energy and into either heat or electricity supplies via a process of gasification.
In addition to project developers, Energos’ customers have tended to include local authorities, waste management companies and major users of energy resources in a variety of industry sectors. Our extensive office network comprises 75 offices across the UK with a partner-led service offering immediate director advice and support.