2 April 2012

Shanks and SSE sign 750m Yorkshire PFI deal

A partnership between Shanks Group and Scottish and Southern Energy, known as 3SE, has signed a 25-year, 750 million PFI contract with the Barnsley, Doncaster and Rotherham Waste Partnership.

The move was announced this morning (April 2) by Shanks, which owns the majority stake in 3SE. 3SEwas named as the preferred bidder for the deal almost a year ago, in April 2011 (see letsrecycle.com story).

An artists impression of the facility that the 3SE consortium plans to build to deliver the BDR waste contract

An artists impression of the facility that the 3SE consortium plans to build to deliver the BDR waste contract

Subject to planning permission, the contract will see Shanks build a mechanical biological treatment (MBT) and anaerobic digestion (AD) facility at Bolton Road, Manvers, in 2015. This plant will process municipal solid and organic waste to recover recyclables, solid recovered fuel (SRF), biogas and digestate. Shanks will operate the facility over the 25-year period of the contract until 2040.

The Bolton Road facility will be one of the first where Shanks has delivered MBT and AD on the same site and will treat up to 265,000 tonnes of residual household waste and a small amount of commercial waste from Barnsley, Doncaster and Rotherham councils. A public exhibition on the plans began last summer (see letsrecycle.com story).

Under the agreement, SSE will use allthe SRF produced at a new multi-fuel plant at Ferrybridge to generate electricity. The plant gained planning permission in October 2011 (see letsrecycle.com story).

PFI

Barnsley, Doncaster and Rotherham has secured 77.4m of Private Finance Initiative (PFI) funding from central government towards the cost of the new waste facilities.

Peter Dilnot, chief executive of Shanks Group plc, said: We are delighted that our joint venture, 3SE, has reached financial close on the BDR PFI contact. This contract combines Shanks established expertise in advanced and sustainable waste processing with SSEs leadership in sustainable energy generation. Working together with the three councils we will maximise recycling and green energy production from waste.

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