6Pre-AdvancedBusinessBusiness

Aviva Faces Mounting Losses on Green Energy Investments

Aviva Investors is experiencing deepening financial losses across its biomass and energy-from-waste portfolio. A Jersey-regulated green infrastructure fund has already lost £500 million, and two additional projects are now in trouble. This case raises critical questions about the financial risks of investing in alternative energy infrastructure.

2 min readLevel 6March 24, 2026

By Flalingo Editorial Team

Vocabulary

Study these words before reading the article. Click the audio button to hear pronunciation.

portfolio

/pɔːrtˈfəʊliəʊ/

noun

A collection of investments, such as stocks, bonds, or projects, held by a person or company

“The fund manager reviewed the entire portfolio to identify underperforming assets.”

administration

/ədˌmɪnɪˈstreɪʃən/

noun

In business, a legal process where a struggling company is managed by an external specialist to try to repay debts

“The company fell into administration after failing to meet its financial obligations.”

mothballed

/ˈmɒθbɔːld/

verb (past participle)

Temporarily closed or suspended operations at a facility, with the possibility of reopening later

“The factory was mothballed due to falling demand, but it could reopen next year.”

viability

/ˌvaɪəˈbɪləti/

noun

The ability of something to work successfully or to be practical and achievable

“Analysts questioned the long-term viability of the project after costs exceeded the budget.”

due diligence

/djuː ˈdɪlɪdʒəns/

noun phrase

A careful investigation or analysis of a business or investment before making a financial commitment

“The investors completed their due diligence before approving the acquisition deal.”

write-offs

/ˈraɪtɒfs/

noun (plural)

Amounts of money that a company officially recognises it has lost and cannot recover

“The bank reported large write-offs after several borrowers defaulted on their loans.”

Article

Click on any underlined word to see its definition. Highlighted words are from the vocabulary section.

Aviva Investors, the investment arm of British insurer Aviva, is facing growing financial difficulties. Two additional incinerator projects have encountered significant losses, according to This is Money. These setbacks follow earlier reports of severe losses within the company's green energy portfolio. The developments have raised concerns about risk management in alternative energy investments. Institutional investors are now questioning the viability of such large-scale infrastructure commitments.

A Jersey-regulated green infrastructure fund, managed by Aviva since 2015, had previously lost £500 million. Three biomass plants in Hull, Boston, and Barry collapsed and fell into administration in 2024. Investors, including local authority pension funds, have written off £368 million from these projects. Creditors led by Aviva Investors, which claims it is owed £480 million, expect minimal recovery. Reports suggest they may recover less than a penny in the pound.

The financial strain extends beyond those three failed plants. A site in Plymouth has been mothballed, meaning operations were temporarily suspended. Meanwhile, Hooton Bio near Ellesmere Port has accumulated losses of £145 million since 2018. These ongoing difficulties suggest a pattern of underperformance across Aviva's energy-from-waste portfolio. Had the fund conducted more thorough due diligence, some losses might have been avoided.

This situation highlights the inherent volatility of investing in emerging green infrastructure. Pension funds, which had been attracted by the promise of low-risk returns, now face significant write-offs. The case demonstrates that sustainable investment strategies must be accompanied by rigorous risk assessment. Aviva's experience could serve as a cautionary tale for the broader investment community. Portfolio diversification and careful project evaluation remain essential for managing infrastructure risk.

Comprehension Quiz

Test your understanding of the article with these multiple-choice questions.

1
How much did Aviva's Jersey-regulated green infrastructure fund lose?
2
What happened to the three biomass plants in Hull, Boston, and Barry?
3
What does the word 'mothballed' mean in the context of this article?
4
How much have creditors been expected to recover from Aviva's failed investments?
5
Which type of investors were particularly attracted to Aviva's green infrastructure fund?

Discussion

Answer these comprehension questions about the article.

1
What type of fund did Aviva manage, and how much money did it lose from three biomass projects?
2
Why did the three biomass plants in Hull, Boston, and Barry fail?
3
How much does Aviva Investors claim it is owed, and how much do creditors expect to recover?
4
What has happened to the Hooton Bio site near Ellesmere Port since 2018?
5
Why were local authority pension funds particularly affected by these investment losses?

Further Discussion

Share your opinions on these open-ended questions.

1
If you were managing a pension fund, how would you assess the risks of investing in green energy infrastructure?
2
Do you think companies should continue investing in energy-from-waste technology despite cases like Aviva's? Why or why not?
3
What steps could an investment firm take to avoid repeating Aviva's experience with its biomass portfolio?
4
How should governments balance encouraging green investment with protecting pension fund holders from financial risk?
5
In your opinion, what role should due diligence play when institutional investors consider emerging technologies?