Alauna, a joint venture between Kelda Water (a subsidiary of Yorkshire Water) and Scottish Water Horizons, beat off competition from fellow contender Viridor (see letsrecycle.com story).
If approved, the contract will see Alauna design, finance, build and operate of an anaerobic digestion facility at a disused rail marshalling yard near Millerhill in Midlothian. The facility would be capable of handling up to 30,000 tonnes of food waste collected at the kerbside a year to produce digestate and renewable energy.
The councils hope the contract will help them achieve higher recycling rates, in line with national targets set out in the Scottish Governments Zero Waste Plan. The Plan includes a requirement to provide food waste collection to all households by January 2016 and a ban on sending biodegradable waste to landfill by 2020.
In Edinburgh, the councils food waste collection service was introduced in April 2011 and will be rolled out city wide next year. At present food waste is taken to Scottish Water Horizons Deerdykes anaerobic digestion facility in Cumbernauld for recycling.
Councillor Jim Orr, environment vice convener for the City of Edinburgh council, said: This is a key part of our long-term strategy to increase recycling in Edinburgh. These state-of-the-art facilities will provide a long-term, value for money treatment solution for food waste collected by both councils with the potential to produce a range of local benefits, particularly green energy.
Councillor Jim Bryant, cabinet member for economic development at Midlothian council, said: I am pleased that the successful bidder has chosen to locate the facilities on a site provided by the partner councils at Millerhill Marshalling Yards in Midlothian. This is the first step of the Councils vision for a Zero Waste Parc at the site. We are excited about the regeneration of derelict industrial land and the future benefits that this could bring to the local area.
‘Delighted’
The decision was welcomed by Alauna, which said it was delighted.
Peter Sharpe, managing director of Alauna Renewable Energy, said: We are delighted to have been chosen as the preferred bidder on such an exciting, innovative and ambitious project. We will now be working hard to complete the final project details with the Zero Waste Team so that we can deliver a world-class facility to the partner councils.
The details of the agreement are now being worked on with the view to signing the contract by the end of 2012, subject to final council approvals. Should all go according to plan, it is expected that construction will begin in 2014 with the facility up and running by the end of 2015.
Procurement
The contract is being procured under a joint project between Edinburgh and Midlothian councils to procure modern waste management facilities, known as Zero Waste. Alongside food waste treatment, the council is currently procuring residual waste treatment capacity.
The councils said that this separate procurement was progressing well after four companies were shortlisted in March 2012 (see letsrecycle.com story).
It added: Initial dialogue with four remaining bidders has now concluded and an Invitation to Submit Detailed Tenders is expected to be issued to these bidders later this month.
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