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29th April 2013
NEW ENERGY-FROM-WASTE CONTRACT IN THE UNITED KINGDOM
SUEZ ENVIRONNEMENT SUBSIDIARY, SITA UK, SELECTED AS PREFERRED BIDDER FOR WEST
LONDON PUBLIC PRIVATE PARTNERSHIP CONTRACT WORTH EUR1 BILLION
A consortium led by SITA UK, a subsidiary of SUEZ ENVIRONNEMENT, has been
selected as preferred bidder for a resource recovery contract worth EUR1 billion
over 25 years with the West London Waste Authority. Total revenues of the
contract are EUR1.9 billion including the management of third party waste and
revenues from the sale of electricity. The other consortium members are Lloyds
Banking Group and ITOCHU Corporation.
The contract is to manage up to 300,000 tonnes of residual household waste each
year from the West London Boroughs of Brent, Ealing, Harrow, Hillingdon,
Hounslow and Richmondupon-Thames. The waste collected from over 1.4 million
residents will be managed in a new energy-from-waste facility in Severnside,
South Gloucestershire and transported by rail from West London. Compared to the
current waste treatment this will save over 83,000 tonnes of CO2 emissions each
year, which is more than two million tonnes over the duration of the contract.
SITA UK will take over the operation of two rail-linked waste transfer stations
in West London. The new rail-linked energy-from-waste facility, which will be
called the Severnside Energy Recovery Centre (SERC), already has planning
permission. This facility will produce enough electricity to power the
equivalent of approximately 50,000 homes and could also supply hot water to
local businesses, further improving its environmental performance.
The total capital investment in the new facility is over EUR280 million. A total
of 53 permanent jobs will be created at SERC with around 200 jobs being created
during its construction.
Jean-Louis Chaussade, CEO of SUEZ ENVIRONNEMENT, said: "Following the Merseyside
PFI, this new resource recovery con tract 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 con tract and getting
on with delivering the infrastructure that is needed to put West London's waste
to good use."
Councillor Bassam Mahfouz, Chair of WLWA, said: "For too long we in west London
have been sending the waste we didn 't 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, sa vin g 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."
SUEZ ENVIRONNEMENT, through its subsidiary SITA UK, has developed a number of
PPP (Public Private Partnership) contracts across the UK including: Surrey,
South Gloucestershire, Kirklees, Cornwall, Northumberland, Aberdeen, the Isle of
Man and Teesside. In April 2013, SITA UK and Cornwall Council agreed on a PFI
contract variation worth EUR1.3 billion of revenue and in the same month, a SITA
UK led consortium was selected as preferred bidder for a EUR1.4 billion contract
with the Merseyside Recycling and Waste Authority.
In the waste sector, this type of partnership was developed to allow British
local authorities to develop alternative waste management facilities to
SITA UK, a subsidiary of SUEZ ENVIRONNEMENT, is a recycling and resource
management company, generating environmental value, social value and economic
value from our nation's waste. The company delivers environmentally responsible
and increasingly innovative solutions for the public, local government, industry
and commerce, enabling our customers to reduce their impact on the environment.
SITA UK serves over 12 million people and handles more than eight million tons
of domestic, commercial and industrial waste through a network of recycling,
composting, energy-fromwaste and landfill facilities. SITA UK employs over 5,500
staff and has an annual turnover in excess of £770 million.
Natural resources are not infinite. Each day, SUEZ ENVIRONNEMENT (Paris: SEV,
Brussels: SEVB) and its subsidiaries deal with the challenge of protecting
resources by providing innovative solutions to industry and to millions of
people. SUEZ ENVIRONNEMENT supplies drinking water to 96.6 million people, pro
vides wastewater treatment services for 66.3 million people and collects the
waste produced by 50 million people. SUEZ ENVIRONNEMENT has 79,550 employees
and, with its presence on five continents, is a world leader exclusively
dedicated to water and waste management services. In 2012, SUEZ ENVIRONNEMENT, a
subsidiary in which GDF SUEZ has a 35.7% interest, generated revenues of EUR
WEST LONDON WASTE AUTHORITY
West London Waste Authority (WL WA) is a statutory waste disposal authority and
was created in 1986. Refuse and recycling collection and the operation of
Household Re-use and Recycling Centres will not form part of the contract with
ITOCHU CORPORATION (ITOCHU)
ITOCHU, a publicly traded company headquartered in Tokyo, Japan, with total
assets of approximately £42.8 billion (Mar 2012), was founded in 1858 and
currently has approximately 130 offices in 66 countries. ITOCHU' s global
infrastructure holdings include: development projects or investments in
renewable energy and power generation; transportation assets; and water and
desalination facilities. Especially in UK's infrastructure, ITOCHU, together
with SITA UK, has developed four energy-fromwaste projects including: South Tyne
and Wear, Cornwall, Merseyside and West London.
LLOYDS BANKING GROUP
SWIP Infrastructure Funds is a greenfield PPP funds management platform in
Scottish Widows Investment Partnership a leading European asset management
company, part of Lloyds Banking Group.
SWIP Infrastructure Funds are backed by corporate pension plans, private equity
and global institutional investors including the European Investment Bank.
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Tel: +33 1 58 81 23 23 Tel: + 33 1 58 81 25 95
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