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Viridor signs Glasgow residual waste contract

July 23, 2012

Viridor reaffirmed its position as one of Scotland’s – and the UK’s – leading recycling, renewable energy and sustainable waste management companies by announcing it 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’s stated 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, and it will make a major contribution on behalf of the City of Glasgow towards Scotland’s ambitious Zero Waste Plan.

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 £160 million by Viridor and the plant will be built by Interserve as the EPC Contractor. Viridor’s 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, said:

“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.”

Mr. Colin Paterson, Scottish Regional Director of Viridor, added:

“From wind farms to sustainable waste management, Scotland is harnessing the potential of its green economy. As Scotland’s recycling, renewable energy and sustainable waste leader,

Viridor welcomes the conclusion of the formal agreement with Glasgow City Council which will not only bring world-class infrastructure to the city, but help it radically transform the way the city’s household waste is managed over the next 25 years.

“Today marks a vital milestone in our programme to translate Scottish zero waste policy into practice by investing over £0.5 billion in vital infrastructure. This comes on the back of our consent for a £200m energy from waste facility in East Lothian, £6m investment Europe’s most advanced glass recycling facility, £10m investment at our Bargeddie advanced recycling hub and the decision by South Lanarkshire to announce Viridor as ‘Preferred Bidder’ in their twenty-five year procurement, currently subject to legal challenge.


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