A SITA-led consortium has won the race for an £850m contract.
The West London Waste Authority chose SITA as preferred bidder for the 25 year contract, which will manage some 300,000 tonnes of residual household waste each year.
This is SITA’s second major contract win in the past fortnight, after it scooped the £1.18bm Merseyside Recycling and Waste Authority deal.
Its consortium with Lloyds Banking Group and Itochu Corporation beat off a rival one comprising E.ON Energy from Waste and Tata Chemicals Europe.
Total contract revenues are put at €1.9bn (£1.6bn) when revenues from third party waste and electricity sales are included.
The contract area covers some 1.4 million homes in the London boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond-upon-Thames.
Waste will go by rail from two transfer stations in west London to a new £236m incinerator at the Severnside Energy Recovery Centre in South Gloucestershire, which SITA said could produce electricity sufficient to power 50,000 homes.
Authority chair Bassam Mahfouz said: “This new contract means that virtually nothing will be sent to landfill. We have also built in that we want to continue increasing recycling, which is already amongst the highest in London.”
SITA said that compared with current waste treatment, its plans would save more than 83,000 tonnes of carbon dioxide emissions each year, the equivalent of more than 2 million tonnes over the duration of the contract.
Jean-Louis Chaussade, chief executive of SITA’s parent Suez Environnement, said: “Following the Merseyside PFI, this new resource recovery contract illustrates our strong positioning and know-how on energy-from-waste activities.”