A consortium composed by SITA UK, Lloyds Banking Group and ITOCHU Corporation has been selected as preferred bidder for a resource recovery contract worth over £900 million* over 25 years with the West London Waste Authority. The total capital investment in the new facility is over £240 million.

The winning consortium beat competition from a consortium of E.ON Energy, Tata Chemicals Europe and Grundon Waste Management.

The contract is to manage up to 300,000 tonnes of residual household waste each year from the West London Boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond-upon-Thames. The waste collected from over 1.4 million residents will be managed in a new energy-from-waste facility in Severnside, South Gloucestershire and transported by rail from West London.

The winning consortium will take over the operation of two rail-linked waste transfer stations in West London. The new rail-linked energy-from-waste facility, which will be called the Severnside Energy Recovery Centre (SERC), already has planning permission. This facility will produce enough electricity to power the equivalent of approximately 50,000 homes and could also supply hot water to local businesses, further improving its environmental performance.

In April 2013, SITA UK and Cornwall Council agreed 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.

Source: SITA UK