Viridor has signed a 25-year contract to handle municipal waste for the South London Waste Partnership - the London boroughs of Croydon, Kingston, Merton and Sutton.
The South London Waste Treatment Services Public Private Partnership (PPP) contract is for the treatment of residual municipal waste through the construction and operation of a new energy recovery facility (ERF) at Viridor’s existing site in Beddington, Sutton.
The contract is subject to planning permission being obtained for the new plant. Viridor submitted an application to Sutton, the local planning authority, in August.
Around 200,000 tonnes of such waste will be treated and the ERF has been planned to take 75,000 tonnes of commercial and industrial waste with a power generation capacity of 26MW of electricity.
The project requires capital investment of approximately £200m from Viridor and the plant will be built by Lagan-CNIM.
Viridor chief executive Colin Drummond, left, said: “The Beddington ERF will make a major contribution towards the capital’s ambitions to achieve self-sufficiency in waste treatment and to maximise renewable energy generation.
“It is a further important step in the roll out of Viridor’s PPP pipeline and represents a key part of Viridor’s growth strategy.”
Rachel Lewis, chair of the South London Waste Partnership’s Management Group said: “This is the biggest contract in our councils’ histories so the process has had to be incredibly rigorous and stand up to intense scrutiny.
“By working together we have been able to pool our expertise, share our resources and achieve big commercial savings through economies of scale. The partnership wanted a more environmentally sustainable approach to waste and we’ve stayed true to this. The improvements being made are something local people can be really proud of.”