PR Newswire/Les Echos/
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28 November 2013
SITA UK, SUBSIDIARY OF SUEZ ENVIRONNEMENT, SIGNS EUR900 MILLION CONTRACT WITH
WEST LONDON WASTE AUTHORITY
A consortium led by SITA UK has signed a Public Private Partnership (PPP)
contract with the West London Waste Authority to recover energy from residual
waste over the next 25 years.
This consortium consisting of SITA UK and its partners Scottish Widows
Investment Partners and the ITOCHU Corporation, will design, finance, build and
operate an energy recovery plant with a capacity of 300,000 tonnes of residual
municipal waste a year.
Over its duration, the contract is worth EUR1.7 billion(1) in total and EUR270
million will be invested into new infrastructure.
Under the agreement, residual waste that the 1.6 million people living in west
London (Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond-upon-Thames)
have not been able to recycle will be transported by rail to this new
Severnside Energy Recovery Centre (SERC) in South Gloucestershire, which
already has planning permission.
The 34 megawatt facility will produce enough electricity to power the
equivalent of 50,000 homes and could also provide heat to local businesses -
further increasing its environmental performance.
This solution will enable the West London Waste Authority to divert 96 per cent
of its waste from landfill and is expected to save two million tonnes of CO2
over the duration of the contract.
Preliminary construction work should begin at Severnside in December 2013 and
the facility is expected to be completed in 2016.
SERC will create 53 permanent jobs once built and is expected to employ
approximately 200 people during construction.
From January 2014, SITA UK will take over the operation of the two rail-linked
waste transfer stations at Transport Avenue and Victoria Road, which will both
be substantially modernised as part of the investment programme.
(1) The total contract revenue is EUR1.7 billion including municipal and
third party revenue and the sale of energy to the National Grid.
Jean-Louis Chaussade, CEO of SUEZ ENVIRONNEMENT, says:
"Just six months after entering into exclusive negotiations, SUEZ ENVIRONNEMENT
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."
"This contract with the West London Waste Authority launches an investment and
construction programme at Severnside set to begin in the next few months."
Councillor Bassam Mahfouz, Chair of WLWA, said:
"A large proportion of our household waste can be recycled, and 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."
SITA UK, a subsidiary of SUEZ ENVIRONNEMENT, is a recycling and resource
management company, which serves over 12 million people and handles 8.5 million
tonnes of domestic, commercial and industrial waste each year. SITA UK provides
services for over 42,000 public and private sector customers and operates a
network of facilities including: recycling, composting, refuse-derived fuel
production, solid recovered fuel production, wood processing, energy-from-waste
and landfill. SITA UK employs over 5,500 staff and has an annual turnover in
excess of £780 million. SITA UK's purpose it to protect the environment by
putting waste to good use.
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,
provides 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
generated revenues of EUR 15.1 billion.
Scottish Widows Investment Partners (SWIP)
Is a greenfield PPP funds management platform backed by corporate pension
plans, private equity and global institutional investors, including the
European Investment Bank. SWIP is part of Lloyds Banking Group.
Media contact: Analysts/Investors Contact:
Tel: +33 1 58 81 23 23 Tel: + 33 1 58 81 25 95
This press release is also available at www.suez-environnement.com
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-0- Nov/28/2013 08:01 GMT
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