Energy from Waste Contract

RNS Number : 6602J

Pennon Group PLC

04 July 2011

 

Exeter Energy from Waste Contract Signed

Pennon Group Plc is pleased to announce that its subsidiary, Viridor Waste Management Limited ('Viridor'), has reached agreement with Devon County Council for the diversion and treatment of 60,000 tonnes of Devon's residual municipal waste through the financing, construction, and operation of a new Energy from Waste ('EfW') plant at the Marsh Barton site in Exeter.

Key parts of Viridor's stated strategy are PPP contracts and the construction and operation of EfW plants.  These are to treat residual waste, which is being diverted from landfill in line with the European Landfill Directive, and to maximise the associated renewal energy generation.  The Exeter EfW plant is being built specifically to handle 60,000 tonnes of Devon's residual municipal waste under a strategic partnership and existing contract, as steeply rising landfill tax drives residual waste disposal away from landfill towards EfW.  The Exeter site has Planning Permission and an Environmental Permit, both obtained by Viridor.

The project requires capital investment of £45.6million by Viridor for a 60,000 tonnes per annum capacity plant which will be built by EPC Contractor, Tiru SA, an experienced provider and operator of EfW plants.  Viridor's investment will be funded from readily available internal funds.

Colin Drummond, Chief Executive of Viridor Limited, said "The Exeter project, the latest EfW development for Viridor, is part of its long term strategic partnership with Devon County Council designed to assist Devon in achieving its landfill diversion targets. The new plant will have an electrical power generation capacity of around 3MW and will come on stream by 2014.  At that time Viridor is expected to have circa 1.0m tonnes of energy from waste disposal capacity and 200MW of renewable energy capacity."

Further information:

Further information on Pennon Group and Viridor can be found on www.pennon-group.co.uk and www.viridor.co.uk

For further enquiries, please contact:

            Colin Drummond - Chief Executive, Viridor on 01823 721435

            Jo Finely - Investor Relations Manager, Pennon on 01392 443401

            Sally Hogan or Katie Johnson, Finsbury on 020 7251 3801

Background Information on Viridor's Strategy

Viridor's stated strategy comprises:

-     proactively developing new recycling operations to meet ambitious EU/UK targets;

-     successfully exploiting the huge potential in waste-based renewable energy generation; and

-     capitalising on its strong position in landfill waste disposal.

This announcement follows previous announcements regarding EfW developments including the Runcorn CHP where construction continues on programme.  Current developments, which will come on stream by 2014, will increase Viridor's total energy from waste disposal capacity to around 1.0m p.a. (including its share of joint venture plants).  Viridor's total waste based renewable energy capacity, on the same basis, is expected to be circa 200MW.

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