The bidders, who have seen off competition from Urbaser for the contract, to treat up to 135,000 tonnes of mixed waste per year collected by the councils.
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The councils said Viridor and the consortium FCC Medio Ambiente SA FCC Waste Services (UK) and E.ON Energy from Waste GmbH will submit their final bids in early 2014, following a further series of discussions. It is expected that the contract will be awarded later that year.
The facilities used to process the waste will be located at a disused rail Marshalling Yards near Millerhill in Midlothian and could include a mechanical biological treatment (MBT) plant and an energy-from-waste (EfW) facility. However the bidders are free to submit proposals for an EfW plant to be located elsewhere. The facilities are expected to be up and running by the end of 2017.
Planning permission in principle has already been granted for a pre-treatment facility with a capacity of up to 200,000 tonnes per annum and an Energy-from-Waste facility up to 100,000 tonnes per annum at the Millerhill site. The preferred bidder will be required to apply for detailed planning consent for their proposals, which will involve a further round of engagement and consultation with the local community.
It is hoped the contract will help the councils reach a 70% recycling rate reducing the amount of waste currently sent to landfill from 50% to less than 5% by 2025, in line with targets set by the Scottish Government.
Redevelopment
Councillor Jim Orr, environment vice convener at Edinburgh Council, said: “I welcome the continued progress the Zero Waste Project is making with the potential private sector partners. These facilities will complement the continued efforts to reduce waste in the first place and increase recycling at the kerbside both in Edinburgh and Midlothian, and will allow us to achieve our very ambitious targets.
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Councillor Jim Bryant, cabinet member for economic development at Midlothian council, added: Continued progress in the Zero Waste Project is important for the recycling and landfill targets of both Councils, and is also the first step in the redevelopment of derelict land at former railway marshalling yards in Midlothian. This has the potential to create new jobs and business opportunities in the area, and I look forward to a successful outcome in the near future.
A separate contract has already been signed with Alauna Renewable Energy to provide a dedicated food waste treatment facility on behalf of the councils (see letsrecycle.com story).
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