WRG proposes Newport energy-from-waste plant

The Northampton-based waste management company, known as WRG, signed an “exclusivity agreement” with Newport-based Solutia UK Ltd in order to develop a plant on land at Solutia's headquarters at Corporation Road in the east of the city.

WRG is pursuing the deal in response to the five council partnership Prosiect Gwyrdd formally beginning the procurement process for one of Wales' largest ever waste management deals. The 25-year deal is expected to be worth over £1 billion (see letsrecycle.com story).

Prosiect Gwyrdd consists of Cardiff city council, Newport city council, Caerphilly county borough council, Monmouthshire county council and Vale of Glamorgan council.

A spokesman for WRG told letsrecycle.com that the company did not yet have a projection of costs or potential capacity of the Newport plant but would be working with Prosiect Gwyrdd to determine their requirements.

“Not a lot on [the tonnage or cost] at this stage as the information has just come out from the Project [Gwyrdd] team and WRG are expressing a real interest early on,” he said.

According to 2008/09 figures for the partnership, Prosiect Gwyrdd would be seeking infrastructure to treat between 137,989 and 160,987 tonnes of residual waste a year. The partnership is “technology neutral” at this stage.

The deadline for pre-qualification bids for the Prosiect Gwyrdd deal is January 22, with the partnership set to work with bidders until the summer of 2011 before announcing a preferred bidder in autumn of that year. The contract is expected to be finalised in 2012.

Proposal

WRG intends to submit a planning application for the Newport facility in the summer of 2010 and claims the facility could potentially be operational by 2014. Solutia and WRG intend to carry out a full public consultation with local residents and stakeholders.

Solutia, which has already installed two 2.5 MW wind turbines on the Corporation Road site, welcomed the WRG proposal.

A spokesman for the company said: “Anything which helps reduced our operating costs in this difficult economic climate will also clearly contribute to the security of employment on the site. So whilst it is still very early days, there are many good reasons for being excited about the potential of the project.”

Solutia has headquarters in America but has a range of global locations including Singapore, Brazil and Belgium.