Amsterdam faces over €400 million loss after failed sale of waste plant AEB
The failed sale of Amsterdam’s waste-to-energy company AEB has reportedly resulted in a financial burden exceeding 400 million euros for the city, which owns the facility, Het Financieele Dagblad (HD) reports. The Amsterdam city government has converted a 222.3 million euros loan to AEB into shares and extended a new loan of nearly 180 million euros to the company, primarily to repay banks, according to the company’s recently published annual report.
The report reveals the full scale of the city’s financial exposure following the decision to halt the sale of AEB after four unsuccessful attempts in five years. In February, former alderman Reinier van Dantzig decided to keep the company in public hands for at least ten years. This move triggered a major refinancing effort by the city, which has now become AEB’s primary lender.
With the new loan of 158.4 million euros, AEB repaid debts owed to ABN Amro, BNG Bank, Deutsche Bank, and ING. In addition to this, the city provided a credit line of up to 21.5 million euros to help AEB cover temporary cash shortfalls without repeatedly requesting municipal funds.
According to AEB’s board, these measures enable the company to meet its financial obligations in the coming years. The company reportedly faces significant investment needs—this year alone, it plans to spend 73 million euros, partly to comply with stricter environmental regulations.
Despite these investments, the financial reality is allegedly stark. Converting loans into shares means the city can only recoup its investment by eventually selling AEB. However, commissioners warn that the chance of a successful sale is diminishing as national policy favors fewer, larger waste processing facilities, forcing AEB to make costly upgrades or face closure.
Since 2019, Amsterdam has injected hundreds of millions into AEB to stabilize the company after it halted incinerator operations due to delayed maintenance. The refinancing now makes Amsterdam fully responsible for a company critical to waste processing in the city and region, yet still reportedly financially unstable.
AEB’s supervisory board cautioned that long-term agreements with the city are necessary to address financial vulnerability. The company also plans a major new investment: a 200 million euros CO2 capture installation, which will likely require additional municipal funding.
Alderman Alexander Scholtes has held confidential talks with the municipal council regarding refinancing arrangements. A spokesperson confirmed the outcomes will be made public after summer. AEB’s director Wim van Lieshout previously announced a company-wide reorganization involving all departments of the 350-employee firm.
Financially, AEB reported a loss of 28.3 million euros for 2024 on revenues of nearly 198 million euros. Its financial buffer is reportedly almost depleted: equity covers only 5.8 percent of the balance sheet, a figure sustained largely by a subordinated municipal loan considered quasi-equity. Outstanding debts amount to 28.1 million euros.
The loss stems partly from operational disruptions caused by numerous explosive laughing gas canisters found in the waste stream. These explosions led to prolonged shutdowns, millions in repair costs, and costly emergency measures. AEB reported that since July last year, the issue has been “under control.”
Additionally, AEB’s bio-energy plant (BEC), which supplies heat for the city’s district heating system, faced acute financial difficulties in 2024 due to a severe shortage of biomass fuel. To keep the plant operational, AEB relied on a municipal guarantee. The annual report highlights this situation as a risk to the company’s continuity until a structural solution is found.
