Veolia Environmental Services has insisted that its Newhaven energy-from-waste incinerator is on track to become operational next year despite concerns that its technology provider AE&E Inova AG may be experiencing financial difficulty.
In East Sussex, AE&E is currently the technology provider for the 242,000 tonnes-a-year capacity Newhaven project, working in partnership with civil engineering firm Hochtief (UK) Construction. The plant is being developed as part of Veolia's 25-year residual waste treatment contract with East Sussex county and Bright & Hove city councils.
However, speaking to letsrecycle.com today (December 13), a spokeswoman for Veolia said that the current uncertainty around the future of AE&E Inova had “no impact” on the firm's ability to deliver the Newhaven plant as planned.
“At the moment there is no impact,” a spokeswoman said. “The Newhaven facility will be handed over this time next year and there will be cold commissioning in the spring and hot commissioning in the summer and that is under a joint venture with Hochtief, which is the civil contractor.”
These comments were followed by a statement from Keith McGurk, managing director of Veolia Environmental Services – South Downs, who said: “The construction of our energy recovery facility at Newhaven in East Sussex is well under way and should be operational by Summer 2011.
“The development of this facility has so far not been affected by the news of AE&E Inova Holdings entering administration, in Switzerland. We continue to monitor the matter daily and we have taken advice from our Swiss lawyers. No doubt the situation will become clearer in the coming weeks, however now it is business as usual.”
As of the end of November 2010, the waste management firm said it had “significantly advanced” development of the plant, with an external ‘skin' being put in place over the northern end of the energy recovery facility.
Administration
Costain today issued a statement to the stock market which said that a £2.6 million stage payment due to the firm from AE&E on December 10 had not yet been received as part of its work on Cory's Belvedere energy-from-waste facility.
The Belvedere project was thrown into doubt at the end of last month when it emerged that AE&E Holdings had begun insolvency proceedings (see letsrecycle.com story). Cory has since stressed its intention to deliver the project.
In the statement issued today, Costain said: “Costain is maintaining an active dialogue with AE&E Inova as the Swiss-based company seeks to secure its future and meet its obligations and, in addition, Costain continues concurrent and positive discussions with Cory Environmental, for whom the Belvedere facility is a development project, regarding payments and completion of the project.”
And, Costain said that AE&E Inova had advised it that the company is seeking a new investor and it has received “binding offers from well-known strategic investors”. The company added AE&E said it was working to an “aggressive timetable” and was “confident” of being able to secure its future.
Elsewhere, AE&E is the named technology provider for Biffa's proposed commercial waste energygeneration plant at Skelton Grange in Leeds (see letsrecycle.com story) and also a constituent member of SITA Northern Ireland – a special purpose consortium created by SITA UK to increase its foothold in Northern Ireland (see letsrecycle.com story).
A spokesman for SITA UK told letsrecycle.com: “We are monitoring the situation closely and we are maintaining a close dialogue with AE&E. We have no further comment at this time.”
However, Biffa was unable to comment at the time of publication.
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