The plant will form part of an integrated waste management facility, which will include a household recycling centre, materials recycling facility and small transfer station. It will be capable of handling 87,000 tonnes of residual waste a year.
In February 2008, Veolia signed a £665 million 25-year waste management contract with Southwark Council to boost its recycling rates and divert waste from landfill.
By introducing an MBT plant Veolia hopes to recover energy, capture ferrous and non-ferrous metals to reach Southwark Councils long-term recycling goal of 50% by 2021.
A Veolia spokeswoman said: The plant will use state-of-the-art technology for MBT processing, including front end shredding, eddy current separation, trommel and overband magnet.
Residual waste which enters the plant will be shredded and ferrous metals will be removed by a magnet, while non-ferrous metals are removed by the eddy current separator. Screens and trommels will then remove the packaging element of the waste.
The plant will be designed with flexibility to deliver Refuse Derived Fuels (RDF) as more markets for MBT residues open up.
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