Viridor signs deal on Glasgow waste contract

Written by: Recycling Waste World | Published:

Viridor has signed the 25-year Glasgow City Residual Waste Treatment Services design, build, finance and operate (DBFO) contract with Glasgow City Council.

Viridor has signed the 25-year Glasgow City Residual Waste Treatment Services design, build, finance and operate (DBFO) contract with Glasgow City Council. The contract requires the recycling and treatment of Glasgow’s residual municipal waste through the financing, construction, and operation of a new Glasgow recycling and renewable energy centre at the council’s own site in the South of the city.

The contract relates to 175,000 to 200,000 tonnes p.a. of waste and is designed to achieve around 90% landfill diversion.

Viridor said its strategy involves the fulfilment of long term service contracts, and the construction and operation of recycling plants and of plants generating energy from the residual waste which cannot be recycled. The centre will comprise advanced facilities for recycling, anaerobic digestion and energy recovery by gasification. ??The contract is subject to Viridor’s gaining planning permission to build the plant. Viridor expects to make a planning application towards the end of this summer and hopes to secure planning consent early in 2013.

The project requires capital investment of approximately £160m by Viridor and the plant will be built by contractor, Interserve.

Viridor said: “its investment is to be funded from internal funds as required. It is expected to be earnings enhancing in its first full year of operation”. ?

Colin Drummond, chief executive of Viridor, added: “The Glasgow renewable energy and recycling centre will make a major contribution to Scotland’s ambitious zero waste plan.

“It is a further important step in the roll-out of Viridor’s service contract pipeline and represents a key part of Viridor’s growth strategy in Scotland.

“The new plants will have a combined gross electrical power generation capacity of 15MW and Viridor will work with its partner, Glasgow City Council, to maximise heat recovery opportunities.

“The plants are due to come on stream in early 2016. At that time, taking account of existing plants and those under construction plus the Glasgow Centre, Viridor expects to have around 1.8m tonnes of thermal treatment capacity and over 250MW of renewable energy capacity.”


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