Suez, Lloyds, Itochu Favored in 1 Billion-Euro London Waste Deal
Suez Environnement (SEV) and its partners Lloyds Banking Group and Itochu Corp. (8001) were named the preferred bidders for a west London household waste-to-energy contract worth 1 billion euros ($1.3 billion) over 25 years.
The project will manage as much as 300,000 metric tons of waste from six boroughs, Europe’s second-biggest water utility said in a statement. The waste will be transported by rail to a power-generating facility in Severnside, South Gloucestershire.
“For too long we in west London have been sending the waste we didn’t recycle to pile up in landfills,” said Bassam Mahfouz, chairman of the West London Waste Authority, in the statement. “This new contract means that virtually nothing will be sent to landfill and our waste will be turned into energy.”
Revenue from the contract may reach 1.9 billion euros when sales from managing third-party waste and the sale of power are included, said Suez, which is 34 percent-owned by utility GDF Suez SA. (GSZ) It may generate enough power for 50,000 homes.
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