6 November 2012

Viridor signs 990 million South London EfW contract

By Will Date

Viridor Waste Management has signed a 25-year multi-million pound waste treatment contract with the South London Waste Partnership to treat up to 200,000 tonnes of residual waste per year.

Under the terms of the contract, believed to be worth in the region of 990 million, Viridor plans to build an energy recovery facility (ERF) at its existing landfill and recycling site on Beddington Lane, Sutton.

An artists impression of the proposed Beddington ERF, which is central to the contract

An artists impression of the proposed Beddington ERF, which is central to the contract

The company was named preferred bidder for the deal in December 2011 (see letsrecycle.com story), seeing off competition for the contract from Waste Recycling Group (WRG). The contract is set to begin from 2017, and will see Viridor responsible for treating waste from the four councils comprising the Partnership, Croydon, Kingston, Merton and Sutton.

The Beddington Lane facility, for which a planning application has been submitted to Sutton council, will cost in the region of 200 million and will have the capacity to treat 275,000 tonnes of waste per year. The plant will generate enough energy to power around 45,000 homes.

Planning

The contract is subject to Viridor gaining planning permission to build the ERF and Sutton council is expected to announce its decision on the planning application for the plant in early 2013. The Environment Agency is currently carrying out a consultation on the facilitys environmental permit application.

The company is due to provide an interim service until the completion of the facility, which will commence in April 2014.

Colin Drummond, Viridor chief executive, said: “The Beddington ERF in south London will make a major contribution towards the Capitals ambitions to achieve self-sufficiency in waste treatment and to maximise renewable energy generation. It is a further important step in the roll out of Viridor’s PPP pipeline and represents a key part of Viridor’s growth strategy.

Croydon, Kingston, Merton and Sutton councils comprise the South London Waste Partnership

Croydon, Kingston, Merton and Sutton councils comprise the South London Waste Partnership

Councillor Derek Osbourne, chair of the South London Waste Partnership’s Joint Waste Committee said: Our boroughs are already leading the way on green issues, but this contract is a major milestone that could bring world-class infrastructure to South London.

Several years ago our four boroughs agreed we couldn’t keep burying waste in the ground. We’ve listened to local people and chosen a much more sustainable way of handling waste. This contract will bring huge environmental benefits to all of the boroughs in our partnership and deliver considerable savings to the taxpayer when they’re needed most.

“The new contract will be cheaper than current landfill disposal from day one, and over the 25-year lifetime of the contract it will save the four partner boroughs around 200 million. This money will help protect frontline services like schools, parks, libraries, social care and roads.”

Contracts

Viridor currently has two existing contracts with the SLWP, including a 14-year 112 million agreement for the transfer, transport and distribution of up to 450,000 tonnes of waste and recyclables. The company has an additional agreement to provide the SLWPs composting, MRF and treatment requirements. Both deals were signed in September 2008 (see letsrecycle.com story).

The SLWP was one of several waste infrastructure projects that had PFI funding withdrawn by the government in October 2010. However, SLWP opted to continue the procurement process for the project, stating that it was not reliant on the 112.9 million PFI credits that it had been previously allocated.

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