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Pennon Group PLC (PNN)

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Friday 11 March, 2011

Pennon Group PLC

PPP Contract Completion

RNS Number : 7596C
Pennon Group PLC
11 March 2011
 

Notification under Listing Rule 10.4.1

 

11 March 2011

 

Oxfordshire Residual Waste Treatment PPP Contract signed

 

Pennon Group Plc is pleased to announce that its subsidiary, Viridor Oxfordshire Limited ('Viridor'), has signed the 25 year Oxfordshire residual waste treatment Public Private Partnership ('PPP') contract with Oxfordshire County Council.  The contract requires the diversion and treatment of Oxfordshire's residual municipal waste through the financing, construction, and operation of a new Energy from Waste ('EfW') plant at Viridor's site at Ardley near Bicester in Oxfordshire. The contract relates to approximately 150,000 tonnes per annum of residual waste and is designed to divert from landfill 95% of waste delivered to the facility. 

 

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 Ardley EfW plant is being built primarily for the Oxfordshire PPP contract although the plant will be available for the market more generally, as steeply rising landfill tax drives residual waste disposal away from landfill towards EfW.

 

Viridor has already been granted planning permission to build the relevant plant.  The project requires capital investment of approximately £205 million by Viridor for a 300,000 tonnes per annum capacity plant which will be built by CNIM Clugston Oxfordshire Limited, a joint venture between Clugston Construction Limited and Constructions Industrielles De La Mediterranee S.A. Viridor's investment is to be funded from internal funds as required.

 

Colin Drummond, Chief Executive of Viridor Limited, said "This major contract with Oxfordshire County Council confirms Viridor's position as a leading player in the area of PPP contracts and energy from waste facilities.  The new plant will have a gross electrical power generation capacity of 25MW and will also be CHP enabled; it is due to come on stream in 2014." 

 

A conference call on this announcement will be held at 9.00am today, Friday 11 March 2011.  Dial in details are as follows:

 

Telephone number:                 +44 (0) 20 3003 2666

 

Password:                               Viridor

 

 

Further information:

 

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.

 

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

 

 

11 March 2011

 

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