7 October 2011

North London reveals options for burning SRF

By Nick Mann

The three bidders left in the running for a contract to burn fuel produced from North Londons residual waste have revealed the sites and technologies they plan to use.

Covanta Energy, E.ON/Wheelabrator Technologies and Veolia Environmental Services UK are all vying for the 30-year deal which will involve burning around 250,000-300,000 tonnes-a-year of solid recovered fuel produced from the residual waste generated by the NLWAs seven member authorities.

Clyde Loakes, the chair of the NLWA, said the Authority was very pleased with the market response to its procurement process

Clyde Loakes, the chair of the NLWA, said the Authority was very pleased with the market response to its procurement process

The bidders who were originally shortlisted in April 2011 are all proposing energy-from-waste facilities using combined heat and power (CHP) technology (see letsrecycle.com story).

The sites and solutions proposed are:

Covanta Energy – a CHP at the Tate & Lyle sugar refinery site at Silvertown, East London which would meet the energy demands of sugar production on site in a sustainable and cost effective way. SRF would be transported by barge from Edmonton in North London to Silverton, which aims to support further development of London rivers for freight transport use. Covanta will shortly begin consultations with the local community and relevant authorities ahead of a planning application in mid 2012.

E.ON/ Wheelabrator Technologies a CHP plant at DS Smith Papers site at Kemsley Mill, Sittingbourne, Kent. The power plant will help meet the energy needs associated with the production of Corrugated Cardboard Material from recycled paper, card and fibre at the mill in a sustainable and cost effective way. The mill is the UKs largest waste paper recycler and the plans for the plant have already successfully negotiated the planning process (see letsrecycle.com story). SRF would be transported here from North London by rail.

Veolia Environmental Services (UK) Plc a CHP-enabled power plant at an existing industrial site with planning permission to operate an asphalt coating plant, an aggregates railhead and a readymixed concrete plant. The site is in Hoddesdon, Hertfordshire, six miles from the boundary of North London and adjacent to an existing Scottish Power plant. The plant will generate renewable electricity and discussions are ongoing with local businesses about the use of heat that can be supplied by the plant. Veolia would transport SRF there by rail. It is beginning consultation with the local community and relevant authorities ahead of a planning application in the first half of 2012.


Commenting on yesterdays announcement, the chair of the NLWA, councillor Clyde Loakes said: “We are very pleased with the market response to the procurement. The three bidders have had to bring forward good environmental and commercial solutions to get to this point in the procurement process and they have done so.

We have set out to allow the energy opportunity afforded by North Londons residual waste to be taken to where businesses have energy needs and to thereby move away from the use of fossil fuels. At this time of challenging economic circumstances I am especially pleased to see how bidders are making the links to employment and minimising the costs to local council tax payers including by seeking to access renewable energy subsidies.

He added: The proposals for sustainable transport solutions such as water and rail, which will keep trucks off the road, are also very welcome”.

The winning proposal will be selected using an evaluation framework that focuses on the quality and cost of the solution. The carbon impact of proposals, including that of the transport solution proposed, is a key element. The Authority’s procurement timetable aims to select a preferred bidder in October 2012 and to award a contract in March 2013.

Waste treatment

The other half of the contract involves treating the 500-600,000 tonnes of residual waste produced by the Authoritys seven member councils, which include Barnet, Camden, Enfield, Hackney, Haringey, Islington, Waltham Forest.

There are two bidders left in the running for this deal, which involves producing the SRF to be burnt under the fuel use aspect of the contract. They are:
Skanska/FCC consortium;
Veolia ES Aurora.

A SITA/Lend Lease consortium had also been named in a three-bidder shortlist for the deal, but withdrew in July 2011, citing unspecified issues over the suitability of its proposals for the project (see letsrecycle.com story).

The NLWA waste project was originally being procured with PFI funding support from the government, but this was withdrawn under the Spending Review in October 2010 (see letsrecycle.com story).

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