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SITA UK signs £760 million contract with West London Waste Authority

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Announced as preferred bidder last April, 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.

SITA UK, along with its partners Scottish Widows Investment Partners and the ITOCHU Corporation, will design, finance, build and operate infrastructure to manage up to 300,000 tonnes of residual municipal waste every year.

Over its duration, the contract is worth £1.4 billion in total and £244 million will be invested into new infrastructure.

Under the agreement, residual waste that the 1.6 million people living in the London boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond-upon-Thames have not been able to separate for recycling will be transported by rail to the 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.

It is anticipated that preliminary construction work will begin at Severnside in December this year and the facility is expected to be completed in 2016.

The Severnside Energy Recovery Centre 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.

David Palmer-Jones, Chief Executive Officer of SITA UK, said:

“I am delighted that we have managed to reach financial close just over six months after being announced as preferred bidder, which is testament to the hard work of all involved.

"We now look forward to working with the Authority to make best use of these valuable materials.”

To mark the financial close of the contract, Jean-Louis Chaussade, the Chief Executive Officer of SITA UK’s parent company, SUEZ ENVIRONNEMENT, visited the Brentford Waste Transfer Station at Transport Avenue and met members of the West London Waste Authority.

Jean-Louis Chaussade, CEO of SUEZ ENVIRONNEMENT, said:

“SUEZ ENVIRONNEMENT has a strong track record of delivering projects on time and we are proud to announce the financial close of this important project with the West London Waste Authority with no delay.

"Now that the contract has been signed, we can start our substantial investment programme immediately and will begin construction at Severnside within the next month.”

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 per cent by 2020.

“For too long we have been sending our remaining waste to pile up and rot in landfill. This new contract means virtually nothing will be sent there in future and provides a sustainable and affordable solution that will turn waste into energy – saving money as well as helping to save the environment.”

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