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North London councils cut shortlist for fuel use deal

By Nick Mann

The North London Waste Authority has cut the number of contenders for the waste-to-energy aspect of its 4 billion waste management procurement, just shortly after also reducing the number of bidders for the other, treatment, aspect of the project.

Chair of the NLWA, Cllr Clyde Loakes, described the joint body's fuel contract as an innovative approach to waste management
Chair of the NLWA, Cllr Clyde Loakes, described the joint body’s fuel contract as an innovative approach to waste management

The announcement leaves three bidders in the running for the deal, which will involve turning the solid recovered fuel produced by the treatment part of the project into renewable energy. A previous shortlist of five was named in February 2011 (see letsrecycle.com story).

The three remaining contenders are:

  • Covanta Energy Ltd, the US energy-from-waste specialists;
  • E.ON Energy from Waste AG/ Wheelabrator Technologies Inc, a partnership between the energy company and US energy-from-waste technology firm;
  • and, Veolia ES Aurora Ltd, a subsidiary of the UKs largest waste management company.

The announcement, made on Friday (April 8), means that the previously-shortlisted Scottish and Southern Energy and a consortium between Viridor and Keppel Seghers Engineering Singapore Pte Ltd are no longer in the running for the 30-year deal.

Labelling the progress with the procurement an important step forward, the chair of the North London Waste Authority, councillor Clyde Loakes, highlighted the potential for the successful bidder to use combined heat and power technology.

He added: Accessing the subsidies that are available for green power generation is also vital to minimising the cost of waste disposal to local council taxpayers.

Cllr Loakes described the NLWAs proposals as an innovative approach, which would allow it to move the fuel to where there was an energy demand and to also move the fuel sustainably.

He said: We are delighted that bidders have grasped this opportunity and brought forward outline solutions that exceed our expectations on cost and on reducing our carbon footprint.

While the Authority has stressed the technology-neutral nature of its procurement, it has mooted the development of two mechanical biological treatment facilities as a key part of the treatment aspect of the project to produce the solid recovered fuel that would then be burnt by the fuel use contractor.

The shortlist for the treatment aspect of the deal is also down to three bidders (see letsrecycle.com story), as the Authority pushes ahead with procuring the project despite the October 2010 loss of PFI support for it as part of the governments Spending Review (see letsrecycle.com story).

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