Leeds signs 460m incinerator deal with Veolia

Leeds city council has today (November 8) signed a 460 million Private Finance Initiative (PFI) contract with Veolia ES Aurora Ltd to build and run the citys planned energy-from-waste incinerator.

Veolia ES Aurora is a subsidiary of French-owned Veolia Environmental Services UK that delivers its PFI/PP contracts. The company was selected as the preferred bidder for the 25-year deal in November 2011 (see letsrecycle.com story).

Subject to planning permission, the proposed recycling and energy recovery facility on the Cross Green Industrial Estate will allow the council to divert waste from landfill.

Last year, Leeds city councils landfill tax bill last year was 9.2 million and this is set to increase by around 1.5 million every year. It is estimated the proposed facility will save the council 200 million over 25 years compared to the costs of continuing to landfill this household waste.

If planning permission is granted, all of Leeds black bin waste – up to 214,000 tonnes per annum – will be sorted at the facility to remove metal, paper, cardboard and plastics for recycling.Leftover waste will be burned under tightly controlled conditions to produce energy.

Strategy

Neil Evans, Leeds city councils director of environment and neighbourhoods, said: As part of the councils overall waste strategy, the facility will play a big part in increasing recycling and moving Leeds away from burying waste in landfill.

Signing the contract was the next step in our timetable to provide the city with a long-term solution that turns waste into a valuable resource.

A planning application for the incinerator was submitted to the council by Veolia in June 2012. Subject to planning approval, building work on the facility would start in summer 2013 and would be operational by 2016.

Three hundred people will be recruited to work on the construction and 45 permanent positions will be created, making a significant contribution to the local economy.

Veolia

Jrme Le Conte, chief executive of Veolia Environmental Services, the parent company of Veolia ES UK, said: This remarkable facility reflects our strategic commitment to the UK market and our sustainable development approach that is reflected in the construction of new waste treatment and energy recovery plants delivering exceptional environmental performance.

In the United Kingdom, Veolia Environmental Services is currently involved in 12 PFI/PPPs. This type of partnership contract will help make it possible to achieve the targets set under the European Landfill Directive.

Mr Le Conte added that it was important to Veolia to make waste a resource: In the United Kingdom in particular, clients are turning to us for innovative solutions that enable them to improve their environmental and energy performance.