Shanks and Kelda Organic Energy have been selected as the final bidders for the development of an organic waste management plan for Cardiff and the Vale of Glamorgan councils.
The 15-year contract is worth £61m and involves the treatment household and commercial organic waste, including food and green waste, but not collection and sorting.
Some 20,000 tonnes of food waste is collected every year by the councils, but the volume is expected to increase to 30,000 over the 15 years, a spokesperson for Cardiff council told MRW.
The councils’ green waste volume is estimated at 30,000 tonnes per year.
Shanks and Kelda Organic Energy plan to use anaerobic digestion facilities to process organic waste. Shanks would use its plant in Pontypool, south Wales, while Kelda Organic Energy has proposed to build a new facility in Tremorfa, near Cardiff.
“We are thrilled that the chosen bidders’ facilities are planned to be local,” said Rob Curtis, the Vale of Glamorgan Council’s cabinet member for the environment and visible services.
Cardiff budgeted £1.8m for carrying out the procurement, and Vale of Glamorgan council £300,000, according to a report of the Vale of Glamorgan council cabinet meeting of 20 May.
The report also said the Welsh government had formally confirmed it will provide Vale of Glamorgan council with procurement support of up to £144,000.
The solution will replace existing temporary contracts, the councils said, and was described as a “landmark organic waste project” by Curtis.
Ashley Govier, Cardiff council cabinet member for environment, said that the final two bidders were of “excellent calibre” and had solid experience in the field.
The companies were shortlisted alongside Agrivert and GENeco to develop proposals for the treatment of organic waste in November 2012.
Thomas Hall, bid director at Kelda Organic Energy, and Peter Eglinton, UK managing director of Shanks Waste Management, said their companies were delighted to have progressed to the next stage of the project.