Bucks names WRG preferred bidder in EfW deal U-turn

Buckinghamshire county council has completed a spectacular U-turn on its long-term energy-from-waste incinerator contract – naming Waste Recycling Group as preferred bidder almost one-year after US firm Covanta was put in pole position for the 30-year deal.

The Northampton-based waste management firm was officially named at a meeting of the council's cabinet yesterday (November 29), which is set to WRG develop a 300,000 tonnes-a-year capacity plant at its Calvert landfill site in the north of the county.

The announcement comes in the wake of Buckinghamshire having originally selected energy-from-waste specialist Covanta Energy as preferred bidder for the deal ahead of WRG in September 2009 (see letsrecycle.com story).

Covanta had intended to develop a 390,000 tonnes-a-year capacity plant at Rookery Pit in neighbouring county Bedfordshire – a decision which was met with vocal criticism from Central Bedfordshire council (see letsrecycle.com story).

Buckinghamshire was forced to reopen negotiations for the contract in March 2010 after an undisclosed “commercial matter” was brought to the council's attention by Covanta (see letsrecycle.com story).

This led to the final two firms retendering final bids in September 2010. And, unveiling WRG as preferred bidder today, Buckinghamshire acknowledged that WRG's appointment would be greeted as something of a “surprise” by many.

Announcing WRG as its preferred bidder, councillor Martin Tett, cabinet member for planning and environment, said: “This is a high-profile project of great importance to residents and the county. The announcement today may come of some surprise.

“However, I would like to reassure residents that I have personally spent a considerable amount of time understanding both the process and the key elements of the recommendation by the professional experts on the project board to ensure this is the right solution for Buckinghamshire.”

Contract

Buckinghamshire claims it will save over £100 million in landfill costs over the life of the contract. The contract is subject to a call-in period of three-working days and Buckinghamshire intends to formally award the deal to WRG in late summer 2011. The plant is expected to produce 22MW of electricity to be sent to the National Grid once it becomes operational.

Commenting on the announcement, John Plant, projects director of WRG's parent company FCC, said: “I am delighted that after a rigorous selection process the Council has chosen our bid as the most robust energy-from-waste solution to divert non-recyclable or compostable waste away from landfill.

“We believe that our proposal for a facility at the Calvert landfill site is both a cost-effective and sustainable option for managing Buckinghamshire's residual waste.”

Meanwhile, a spokesman for Covanta told letsrecycle.com: “Covanta Energy is disappointed not to have been appointed as we believe our solution offered a value for money and environmentally beneficial solution to Buckinghamshire waste treatment needs. We await further feedback on our submission from the county council.”

The announcement coincides with Bedford borough council yesterday submitting an official objection to the Infrastructure Planning Committee (IPC) over the Covanta proposal – with the local authority contesting the size, location and technology proposed.