A new £250 million energy recovery centre is to be built in Teesside with support from the UK Green Investment Bank (GIB). The project includes building all the necessary energy from waste infrastructure, including two rail interchanges.
The project is part of a 30-year Public Private Partnership (PPP) contract between the Merseyside Waste Disposal Authority (MWDA) and a consortium of SITA UK, Sembcorp Utilities UK and the ITOCHU Corporation.
The facility will convert more than 420,000 tonnes of residual waste into energy each year, which would have otherwise gone to landfill.
The waste will be collected from the metropolitan boroughs of the MWDA (Liverpool, Knowsley, St Helens and Sefton) and the Unitary Authority of Halton Borough Council, serving a population of approximately 1.5 million. It will then be taken to a rail-linked waste transfer station at Knowsley and transferred to the new plant at Wilton, Teesside.
The facility will generate enough electricity to meet the needs of more than 60,000 homes each year. It will also save over 1.8 million tonnes of CO2e over its lifetime, equivalent to the annual emissions of 780,000 cars.
Edward Northam, Head of Investment Banking, UK Green Investment Bank, said:
This is our third significant investment in the waste sector in the past month, delivering on our strategy to finance long term energy from waste projects. During the lifetime of our investment, we expect the Mersey facility to generate enough electricity to power thousands of homes, from many millions of tonnes of household waste that would otherwise go to landfill.
Subject to local demand, the plant will also be able to provide heat to nearby businesses, with the capacity to deliver 190 tonnes of steam per hour via a district heating system.
The project is expected to create 75 permanent jobs, in addition to more than 100 jobs during the construction phase.
GIB will invest £20 million of the senior debt alongside Banco Bilbao Vizcaya Argentaria, S.A., London Branch; Bank of Tokyo-Mitsubishi UFJ Ltd; Credit Agricole Corporate & Investment Bank; Mizuho Bank; Sumitomo Mitsui Banking Corporation and Unicredit Bank AG, London Branch. Equity will be provided by SITA UK Limited, Sembcorp Utilities Limited and Japan's ITOCHU Corporation (on behalf of I-Environment Investments Ltd).
Business Secretary Vince Cable, said:
This new plant will mean less of our household waste going to landfill and less reliance on fossil fuels for energy generation. It will also create 75 permanent jobs and hundreds more during the construction phase. It is precisely the sort of project which we created the Green Investment Bank to support, as part of this country's transition to a green economy.
David Palmer-Jones, Chief Executive Officer of SITA UK said:
The signing of this contract is great news for Merseyside and Halton, and for the environment, because it means we will now be able to begin building the necessary infrastructure to put this waste material to good use - rather than sending it to landfill. Agreeing this contract is also great news for local employment near our sites, because we expect to create around 75 permanent jobs and employ hundreds more during the construction process.
Notes to editors
SITA Sembcorp UK is the SPV for the consortium of SITA UK, Sembcorp Utilities UK and I-Environment Investments Ltd, a subsidiary of ITOCHU Corporation.
UK Green Investment Bank
The UK Green Investment Bank was launched in November 2012. With £3.8 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a "for profit" bank, whose mission is to accelerate the UK's transition to a greener economy, and to create an enduring institution, operating independently of Government.
SITA UK, a subsidiary of SUEZ ENVIRONNEMENT, is a recycling and resource management company, which serves over 12 million people and handles 8.5 million tonnes of domestic, commercial and industrial waste each year. SITA UK provides services for over 42,000 public and private sector customers and operates a network of facilities including: recycling, composting, refuse-derived fuel production, solid recovered fuel production, wood processing, energy-from-waste and landfill. SITA UK employs over 5,500 staff and has an annual turnover in excess of £780 million. SITA UK's purpose it to protect the environment by putting waste to good use.
SEMBCORP Utilities UK
Sembcorp UK (www.sembcorp.co.uk) is an industrial utilities and services supplier based on the Wilton International site on Teesside. Part of the leading energy, water and marine group Sembcorp Industries, the company employs around 380 people on Teesside and has customers in the chemical, petrochemical, biofuels and energy sectors. Sembcorp has invested more than £150 million in its facilities since purchasing the business in 2003. Wilton 11 will be Sembcorp's second renewable energy power station on the site following the £64 million investment in the Sembcorp Biomass Power Station ("Wilton 10") in 2007.
Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities of over 5,900 megawatts of gross power capacity and over eight million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in urban development.
The Group has total assets of over S$13 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index and several MSCI and FTSE indices.
Merseyside Recycling & Waste Authority (Merseyside Waste Disposal Authority)
The Merseyside Recycling & Waste Authority is responsible for the disposal of municipal waste on Merseyside. Established in 1986 following the abolition of Merseyside County Council, it is a statutory Authority that works with all the local authorities on Merseyside - Knowsley, Liverpool, Sefton, St Helens and Wirral. MRWA takes a lead in advocating recycling, waste minimisation and safe and effective disposal of waste for Merseyside's residents. www.merseysidewda.gov.uk
MRWA is a key partner in the Merseyside and Halton Waste Partnership which was established in 2005. All members of the MHWP have responsibilities for tackling the effective delivery of sustainable municipal waste management in Merseyside. ww.recycleformerseysideandhalton.com