Alauna Renewable Energy (ARE) has been appointed preferred bidder to build and operate a food waste facility in Midlothian.
Zero Waste, a joint venture between the City of Edinburgh and Midlothian councils, chose ARE for the 20-year contract to design, finance, build and operate of the facility at Millerhill Marshalling Yards, ahead of rival bidder Viridor.
ARE is a joint venture of Kelda Water Services and Scottish Water Horizons.
The facility aims to boost recycling rates in line with national targets set out in the Scottish government’s Zero Waste Plan.
Construction on the derelict industrial site is scheduled for 2014 with operation starting by the end of 2015, pending signing of the contract, which is expected by the end of this year.
Councillor Jim Orr, environment vice convener at City of Edinburgh Council, said: “This is a key part of our long-term strategy to increase recycling in Edinburgh. These state-of-the-art facilities will provide a long-term, value for money treatment solution for food waste collected by both councils with the potential to produce a range of local benefits, particularly green energy.”
An invitation to submit detailed tenders for a separate residual waste treatment contract is expected to be issued later this month, after initial dialogue with four bidders.