The company, with backing from Lloyds Banking Group and Japanese investment firm ITOCHU Corporation, was the sole bidder for the WLWA contract following the withdrawal of a consortium comprising E.ON Energy from Waste and Tata Chemicals in March 2013 (see letsrecycle.com story).
The contract covers all aspects of treatment including any necessary transport, the operation of transfer stations, and contracts for outputs such as energy and refuse-derived fuel for the West London boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond-upon-Thames. It will involve handling up to 300,000 tonnes of waste from households per year.
SITA will take over the operation of two rail-linked waste transfer stations in West London, via which waste collected from more than 1.4 million residents in the boroughs will be transported by rail to a new energy from waste (EfW) facility in Severnside, South Gloucestershire.
The Severnside Energy Recovery Centre (SERC), which has planning permission, will produce enough electricity to power the equivalent of 50,000 homes and could also supply hot water to local businesses.
‘It is great news for the six boroughs and their residents, knowing that their waste materials will be used to produce energy and avoid landfill.’
David Palmer-Jones, chief executive, SITA UK
According to SITA UK, the operation will save more than 83,000 tonnes of CO2 emissions each year compared to the current waste treatment in the area, adding up to more than two million tonnes over the duration of the contract.
Total capital investment in the new facility is more than 240 million, according to SITA UK, with 53 permanent jobs created at SERC and around 200 jobs created during its construction.
Reaction
David Palmer-Jones, chief executive of SITA UK, said: We are delighted to be named preferred bidder for this major waste management contract in West London. It is great news for the six boroughs and their residents, knowing that their waste materials will be used to produce energy and avoid landfill.
We look forward to working with West London Waste Authority and developing the key infrastructure in this transformative partnership. Contracts like this make the circular economy a reality and show that environmentally sustainable solutions offer nothing other than business sense – extracting energy and employment from materials which too often are treated as waste.
Jean-Louis Chaussade, chief executive of SITA UK parent company Suez Environment, said: Following the Merseyside PFI, this new resource recovery contract illustrates our strong positioning and know-how on energy-from-waste activities. We have a solid track record of delivering new resource management facilities that local authorities need to manage their residual waste. With planning permission already in place for our energy-from-waste facility we look forward to signing the contract and getting on with delivering the infrastructure that is needed to put West Londons waste to good use.
Councillor Bassam Mahfouz, chair of WLWA, said: For too long we in west London have been sending the waste we didnt recycle to pile up in landfills. This new contract means that virtually nothing will be sent to landfill and our waste will be turned into energy, saving the environment, and saving each borough money. We have also built in that we want to continue increasing recycling, which is already amongst the highest in London.
Subscribe for free