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Veolia wins short-term Hertfordshire treatment contract

Veolia has been awarded a two-year contract worth up to £14.4 million to treat as much as 40,000 tonnes per year of Hertfordshire’s residual waste.

London trials for Veolia RCV
Veolia is to treat up to 40,000 tonnes a year of Hertfordshire's residual waste

The tonnage Veolia will process covers a “shortfall in capacity” from 2021 predicted by Hertfordshire.

Hertfordshire says it produces 250,000 tonnes of household waste per year and has long been trying to build an energy from waste (EfW) plant to process this.

Veolia’s previous £1 billion waste management contract with Hertfordshire county council was cancelled in August 2019 after the application to build a 320,000 tonnes per year energy from waste (EfW) plant was turned down (see letsrecycle.com story).

This came after planning permission for a facility in New Barnfield was overturned in the summer of 2015, following a drawn-out political battle regarding the development of the plant.

The council extended its “bridging arrangements” in 2018 to treat residual waste up until 2024, when it had hoped the EfW would be operational, as outlined below.

Table shows Hertfordshire’s current contracts

However, the council said there was still a shortage of capacity it needed to fill.

In a meeting of the council’s waste and recycling board last year, a report said: “Despite awarding contracts to all bidders there is a shortfall in capacity required by the council of approximately 25,000 tonnes. The residual waste capacity secured through the awarded contracts reveals a shortfall in capacity available and will see an increase in waste being sent to landfill as the only available options.”

Veolia has now been awarded the contract to plug this gap, winning the contract ahead of five other bidders. The contract will start from April 2021, running until March 2023 (although extensions and the provision of advanced services are possible in accordance with the conditions of contract).

Complementary

While Veolia declined to comment on the new contract, a Hertfordshire county council spokesperson told letsrecycle.com: “This new contract will complement five separate agreements with a range of contractors operating regional facilities in order to meet the full demand of the 250,000 tonnes of residual waste generated each year.

It is anticipated the Rookery Pit EfW plant will be fully operational by 2022

“These are short term arrangements designed to replace existing contracts that expire at the end of March 2021 and will run to a maximum of March 2024.

“Officers are exploring the options available beyond 2023/24 with the current timetable that options will be presented to county council members at the community safety and waste management cabinet panel meeting in May 2020.”

The contract is to run from 1 April 2021 to 31 March 2023 with the possibility of a one-year extension. The provision of street sweepings is not included in the contract.

Material is to be treated at the Rookery South Energy Recovery Facility, currently under construction in Bedfordshire (see letsrecycle.com story).

As part of the procurement process the council divided the contract into four lots, each for the treatment and disposal of 10,000 tonnes of waste. Veolia won all four lots.

EfW

Veolia’s plans for an EfW plant in Hertfordshire had been in the pipeline for several years, with the company initially putting forward plans for a plant at a site at New Barnfield in Hatfield to fulfil an £800 million waste contract with the county council (see letsrecycle.com story).

Veolia’s last contract with Hertfordshire was cancelled after an application to build an EfW plant at Hoddesdon was turned down

However, planning permission for this facility was overturned in summer 2015 following a drawn-out political battle engulfing the development of the plant (see letsrecycle.com story).

In 2016, the company signed a revised 30-year contract with the county council worth £1 billion to treat the 350,000 tonnes of household residual waste generated in the county per year. This contract was cancelled in August 2019.

Hertfordshire

Hertfordshire county council say the region now generates around 250,000 tonnes of residual waste annually.

Representing an estimated population of just under 1.2 million, Hertfordshire had a recycling rate of 51.7% for the 2018/19 financial year. This is significantly more than the national average of 45.1%.

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