Contract is valued at $733 million.
Veolia Environmental Services, through its subsidiary Veolia Environmental Services (UK) Plc1, has signed a 25-year Private Finance Initiative (PFI) contract with the Leeds, U.K., city authorities for residual municipal waste treatment and energy recovery.
Veolia Environmental Services was selected as the preferred bidder on Jan. 23, 2012, for a contract worth around £460 million. It includes the installation of a high-tech recycling and energy recovery facility that is expected to save the city £200 million over the term of the contract.
Subject to obtaining the necessary planning consents, the facility will be built in the East Leeds Cross Green Industrial Area. It will supply the National Grid with enough electricity to power 20,000 households. In cooperation with the Leeds city authorities, Veolia Environmental Services (UK) Plc is also planning to develop a cogeneration plant able to supply heat to local users.
The recycling and energy recovery plant is scheduled to open in spring 2016.
“This remarkable facility reflects our strategic commitment to the UK market and our sustainable development approach that is reflected in the construction of new waste treatment and energy recovery plants delivering exceptional environmental performance,” says Jérôme Le Conte, CEO of Veolia Environmental Services. “In the United Kingdom, Veolia Environmental Services is currently involved in 12 PFI/PPPs. This type of partnership contract will help make it possible to achieve the targets set under the European Landfill Directive.”
In order to meet European Landfill Directive targets it is essential to concentrate on converting waste into a resource. The British government estimates that achieving this target will require an investment of £10 billion in waste management infrastructure by 2020.
“Veolia Environmental Services made the strategic decision, well before the market, to make waste a resource,” adds Jérôme Le Conte. “”In the United Kingdom in particular, clients are turning to us for innovative solutions that enable them to improve their environmental and energy performance.”