Viridor has signed a shared-revenue contract with Ealing Council to process mixed dry recycling.
Under new arrangements, starting on 6 June, the London borough will make alternate weekly collections of residual waste and commingled recycling. It will continue to collect food waste every week.
It is the first time the council has used commingled recycling from households, having previously collected plastics separately.
Recyclates will be taken to a depot in Greenford before being processed by Viridor at its MRF in Crayford, Kent.
A percentage of the value of the recyclables sent to the MRF will be used to offset the cost to the council of using the facilities.
This is the first time the council has taken a shared-revenue contract for recycling material. It told MRW it believes the contract will help achieve best value, giving incentives to the council to collect high-quality recyclables and the contractor to perform well.
Viridor said in January it was confident that local authorities will be willing to share more risk in waste management contracts.
Last year, Biffa said it had shifted to shared-revenue contracts because its policy dictated it would not bid for council contracts without such a clause due to the continuing distressed market for secondary raw materials.
Viridor’s three-year contract with Ealing, signed after a seven-month procurement process involving three companies, has an option to be extended for another two years.
Amey is the current waste and recycling collection contractor and will continue to do this for the source-separated collections at bring banks and flats. It will also continue to collect the dry mixed recycling but the reprocessing will be carried out by Viridor.
Bassam Mahfouz, council member for transport, environment and leisure, said: “One of the important changes with the new recycling system is that we’re making it easier for residents to recycle, mixing all of their items into one container.
“Viridor is a company that is already familiar with Ealing’s waste because it already processes some of our waste. I know they’ll be working with us, to ensure that residents’ efforts help us achieve our 50% recycling target.”
Chris Jonas, Viridor director of business development, said: “By working together we are able to combine a simpler collection system and one of the UK’s most advanced recycling facilities, which will drive up recycling rates and increase the amount of high-quality recyclate that UK manufacturers are able to use in our ever increasing circular economy.”
In 2015, Ealing Council sent more than 21,000 tonnes of recycling for reprocessing, 45% of household waste collected in the borough.
The council has a target of recycling 50% of all its waste by 2018.