GDF Suez has landed a £1.4billion contract to convert thousands of tonnes of London household waste into energy.
A consortium, led by the firm’s Sita UK subsidiary, has signed a contract with the West London Waste Authority (WLWA) to convert 300,000 tonnes of residual municipal waste every year into energy for the next 25 years.
The consortium, which also includes Aberdeen Asset Management’s new acquisition Scottish Widows Investment Partners and Itochu Corporation, will design, finance build and operate the 35MW energy to waste anaerobic digestion (AD) plant in Severnside, South Gloucestershire.
The plant, which will be called the Severnside Energy Recovery Centre (SERC), has already been granted planning permission.
Construction is due to start next month and the consortium says around 200 jobs will be supported during the build phase.
Sita, which is a subsidiary of Suez Environment, says the contract is worth £1.4 billion over its lifetime and a total of £225 million will be invested in new infrastructure.
The plant will convert non-recyclable waste from 1.6 million residents living in the west London boroughs of Brent, Ealing, Harrow, Hillingdon and Richmond-upon-Thames. The waste will be transported to the centre by rail.
It is hoped the plant will produce enough electricity to power the equivalent of 50,000 homes every year, with heat produced from the AD process used in local businesses.
The new plant will cut the amount of waste the WLWA sends to landfill by 96% and save around 2 million tonnes of CO2 over a 25-year period.
SERC is expected to be up and running in 2016, creating 53 permanent jobs once it is fully operational.
In January next year, Sita will take over the operation of two rail-linked waste transfer stations and carry out modernisation at the sites as part of the project.
“Just six months after entering into exclusive negotiations, Suez Environment has once again demonstrated its ability to deliver high-quality projects to tight deadlines, the strong commitment of its teams and the desire to help everyone involved succeed,” said Suez Environment chief executive Jean-Louis Chaussade.
“This contract with the Wst London Waste Authority launches an investment and construction programme at Severnshide set to begin in the next few months.”
WLWA chair councillor Bassam Mahfouz said: “A large proportion of our household waste can be recycled, adn this contract will support west London’s commitment to recycle at least 50% by 2020.
“This new contract provides a sustainable solution that will turn waste into energy, saving money as well as protecting the environment.”
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