Shanks Group has achieved financial closure for the Surrey Organics Biofuels Processing Facility P3 project, in Vancouver, Canada.

The total project investment is estimated at CAD$60 million (US$48.1 million). The Government of Canada has agreed to contribute up to 25% of the capital costs through its P3 Canada Fund.

Located in Surrey's Port Kells industrial area, the facility will receive and process 115,000 tonnes of organic waste annually. It will convert the City's kitchen and yard waste, along with commercial waste from across the Region, into renewable natural gas. The natural gas will be used to power the City's natural gas waste collection trucks, natural gas service fleet and new district energy system. The facility will also produce a compost product that will be suitable for landscaping and agricultural applications.

Shanks will design, build, finance, operate and maintain the facility for 25 years after the construction period, which will start this spring. Once completed in early 2017, Surrey will have the first closed-loop fully-integrated organics waste management system in North America. The facility will be the largest of its kind in Canada with the capacity to process 100% of the City's organic waste over the 25 year contract term, along with commercial organic waste, helping Metro Vancouver to achieve its regional 70% waste diversion target.

The world-class facility will leverage Shanks' extensive international experience of organic processing, which includes market leadership in the highly advanced Dutch organics market and proven capability to deliver value to municipal customers both in Europe and in Canada. It will also use advanced technology developed from Shanks' current operations in Ontario.

Peter Dilnot, Group Chief Executive of Shanks, said:

"We are delighted to take this important step forward for the contract with the City of Surrey, which is in line with our strategy to expand our organics footprint in Canada and invest in infrastructure which is underpinned by long-term contracts. We look forward to continuing to work with the City of Surrey to begin construction of the first closed-loop integrated organics waste management system in North America."

This project is integral to Surrey's Rethink Waste program launched in October 2012, which includes curbside organics collection and a fleet of compressed natural gas waste collection trucks. The Rethink Waste program has already led to an over 40% reduction in Surrey's residential garbage sent to the landfill.