Itochu Corporation has announced it has signed a 25-year waste PPP contract with West London Waste Authority.
Itochu is part of a consortium that is composed of:
The contract includes the design, build, finance and operation of the new Severnside Energy Recovery Centre (SERC), which will generate enough electricity to power the equivalent of 50,000 households and will manage up to 300,000 tonnes of residual household waste each year. The residual waste will be transported by rail to the SERC.
The total contract value is worth GBP1.4 billion (US$ 2.270 billion) from municipal revenue, treatment of third party waste and sale of electricity to National Grid.
The total capital investment in the new facility is over £240 million.
The new Severnside Energy Recovery Centre will be able to divert 96 % of residual waste collected from the London boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond upon Thames, which have a combined population of 1.6 million people and will save two million tonnes of CO2 over the duration of the contract.
The winning consortium beat competition in April 2013 from a consortium of E.ON Energy, Tata Chemicals Europe (Tata Group) and Grundon Waste Management.In April 2013, SITA UK and Itochu agreed with Cornwall Council on a PFI contract variation worth £1.1 billion of revenue and in the same month, a SITA UK led consortium was selected as preferred bidder for a £1.18 billion contract with the Merseyside Recycling and Waste Authority.