Artist's impression of the Severnside Energy Recovery Centre.

The West London Waste Authority (WLWA) has today (29 April) announced that the consortium led by SITA UK is the preferred bidder for the authority’s 25-year residual waste contract.

The consortium, formed of SITA UK, part of Suez Environnement, and backers Lloyds Banking Group and Japanese investment firm ITOCHU Corporation, was largely expected to be announced as the preferred bidder as it was the sole remaining bidder for the £900 million waste (€1 billion) contract, following the unexpected withdrawal of the rival bid from a consortium comprising Tata Chemicals, E.ON Energy from Waste and John Laing Investments last month.

‘300,000 tonnes of residual waste per year’

The contract will see SITA UK treating up to 300,000 tonnes of residual waste collected from the boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond upon Thames. Currently, the boroughs send waste that cannot be recycled to four landfill sites in Abingdon, Bicester, Calvert and Bletchley.

Under the contract, which covers the waste of some 1.4 million residents, the waste contractor will be expected to cover all aspects of waste treatment including contracts for outputs such as energy, refuse-derived fuel, and recyclates.

However, refuse and recycling collection and operation of Household Reuse and Recycling Centres will not form part of the contract.

Council opposition

According to SITA UK, waste will be transported via rail from collection points in Brentford and South Ruislip to the combined heat and power (CHP) plant at the Severnside Energy Recovery Centre, which has already been granted planning permission, in Gloucestershire.

The facility was widely opposed by Gloucestershire residents and councillors, with South Gloucestershire Council unanimously rejecting planning permission for the plant in June 2010. However, after an appeal by SITA, Communities Secretary Eric Pickles overruled the local decision, saying it could go ahead.

According to WLWA, approximately 96 per cent of waste will be diverted from landfill, and produce enough electricity to power the equivalent of approximately 50,000 homes (equivalent to half the borough of Richmond).

The facility is also expected to create 53 permanent jobs, with around 200 jobs being created in its construction.

It is expected that the contract will be signed in September 2013. The contract start date is currently April 2015, but reportedly ‘opportunities for an earlier start are being considered’.

It is hoped this contract will help reach the target set by Boris Johnson for London to achieve zero waste to landfill by 2037.

‘Virtually nothing will be sent to landfill’

WLWA’s announcement follows the selection of SITA UK as the preferred bidder for Merseyside and Halton Waste Partnership’s Waste Resource and Recovery contract on 18 April.

Speaking of the London contract, Jean-Louis Chaussade, CEO of SUEZ ENVIRONNEMENT, said: “Following the Merseyside PFI, this new resource recovery contract 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 contract 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, saving 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.”

David Palmer-Jones, Chief Executive of SITA UK added: “We are delighted to be announced as preferred bidder for this major contract in London. With planning permission already in place for our energy-from-waste facility, we look forward to signing the contract and getting on with delivering the infrastructure that is needed to put West London’s waste to good use.”

Read more about SITA UK’s Severnside Energy Recovery Centre.