Viridor takes on 50% stake of Colnbrook recovery plant

The plant had been solely a Grundon project, but Viridor will now own 50% of the Lakeside Energy from Waste Ltd subsidiary that will build, own and run the facility.

Grundon and Viridor directors sign joint agreement (left to right): Richard Skehens (MD Grundon), Mike Hellings (MD Viridor), Norman Grundon (Chairman, Grundon), Barrie Hurley (Development Director, Viridor).

Once commissioned, the Lakeside plant should have the capacity to treat up to 400,000 tonnes of waste each year.

Grundon said the decision to bring in Viridor was based on the need to bring in “complementary skills and experience” to deliver the facility. The plant will be strategically located for Viridor, which has an established presence in the South of England.

However, speaking to letsrecycle.com, a spokeswoman for Lakeside stressed that the joint venture related only to Lakeside and the energy-from-waste plant, and does not involve a takeover of the rest of Grundon.

Expertise
In a joint statement on the agreement, Viridor managing director Mike Hellings and Grundon managing director Richard Skehens said: “This partnership represents a real meeting of minds between two well established and well respected waste management companies. Our skills and expertise complement each other very well and just as importantly, our management teams are already working together seamlessly.”

” This partnership represents a real meeting of minds between two well established and well respected waste management companies.“
– Richard Skehens and Mike Hellings, Grundon and Viridor
An engineering contract for the plant is expected to be finalised within weeks with the preferred bidders – Japanese consortium Itochu/Takuma – once financial closure is achieved with the lead arranger, the Bank of Ireland.

Mr Hellings and Mr Skehens said in their joint statement: “We expect to see financial close and the award of the EPC contract in early autumn, although the preliminary infrastructure works have already started on site with the construction of the weighbridge. Commissioning of the EfW plant is scheduled for mid 2008.”

It had been hoped that the Colnbrook plant would pick up a contract to treat waste from the West London Waste Authority, but this possibility was objected to by London Mayor Ken Livingstone. Lakeside said the Colnbrook plant is “not dependent” on such a contract.