25-year Residual Waste Treatment Contract signed with five Authorities across South Wales
Pennon Group Plc is pleased to announce that its subsidiary, Viridor, has signed a Public Private Partnership (PPP) contract with Cardiff Council, acting on behalf of Prosiect Gwyrdd, a partnership of five local authorities from across South Wales, to treat the councils' residual waste over the next 25 years.
The waste from the five authorities: Cardiff, Monmouthshire, Caerphilly, Vale of Glamorgan and Newport, will be treated at Viridor's Energy from Waste (EfW) facility that is currently being built at Trident Park, Cardiff, and due for completion in 2014.
Prosiect Gwyrdd will deliver an average of 172,000 tonnes of waste per year with the plant also taking up to 178,000 tonnes of commercial and industrial waste from across South Wales.
Operating at its full capacity of 350,000 tonnes, the facility will generate 28 MW of power by producing electricity, enough energy to provide 50,000 households entire electric needs. Viridor is also working with Cardiff Council on future plans for a district heating network, which could increase the power generation through electricity and heat to 43 MW.
Capital investment in Trident Park is £223m and the plant is being built by CNIM and Lagan Construction. Capital funding for the project has been provided by Pennon. Trident Park is expected to be earnings enhancing in its first full year of operation.
Viridor's stated strategy involves the fulfilment of long-term service contracts; and the construction and operation of recycling plants and plants generating energy from the residual waste which cannot be recycled.
Viridor Chief Executive Ian McAulay said:
"We are delighted to have signed this contract with Prosiect Gwyrdd. The project represents another key milestone in the development of Viridor's PPP/EfW strategy".
For further information, please contact:
Jo Finely, Investor Relations Manager, Pennon Group
Sarah Heald, RLM Finsbury
020 7251 3801