Wakefield Council and Shanks have signed a 25-year Green Investment Bank funded waste contract.
The estimated £750m deal includes a new waste treatment and energy from waste plant in South Kirkby using a mix of technologies including mechanical treatment, autoclave and anaerobic digestion, to process 200,000 tonnes a year, as well as improved household waste recycling centres.
Wakefield hopes to increase its recycling rate from 40% to a minimum of 52%.
The deal will create around 250 new jobs in construction and a further 60 permanent positions.
Shanks will also take control of the council’s HWRCs, transfer stations and bring sites.
Cllr Peter Box leader of Wakefield Council said deal would bring jobs and investment as well as an improved service to the district.
“It gives us the opportunity to safeguard jobs of current employees who work in this area and provide new jobs in one of the most deprived areas in the district with the building and opening of the new waste treatment plant in South Kirkby.”
Peter Dilnot, chief executive of Shanks Group said the firm’s solution would help Wakefield make more from its waste “by increasing recycling, generating green energy and producing compost for land remediation and use by residents.”
“We are excited that the Green Investment Bank has chosen this project as one of its first major investments, which will see Shanks draw on experience from across our Group to deliver a genuinely sustainable solution.”
The Green Investment Bank will provide up to £30.4m of senior debt to the project on commercial terms, alongside a syndicate of commercial banks: BayernLB, Sumitomo Mitsui Banking Corporation, and Barclays Bank, which will provide £121.7m.
Lord Smith of Kelvin, chair of the Green Investment Bank, said “We are delighted to support Shanks in this project which is one of our first investments in this sector.
“The UK Green Investment Bank is committed to reducing the amount of waste which goes to landfill, supporting the UK in its transition to a low carbon economy, whilst driving a commercial return for the bank.”