Contract will run for 25 years and be worth more than £750 million.
The U.K.-based waste management firm Shanks Group plc has announced that its majority owned joint venture with SSE, called 3SE, has signed a 25-year contract worth more than £750 million (US$1.2 billion) with Barnsley, Doncaster and Rotherham (BDR) Councils for the treatment of black bag waste.
According to Shanks, subject to planning permission being granted, the company will build a mechanical biological treatment (MBT) and anaerobic digestion (AD) facility in Manvers, U.K. The plant is expected to be complete by 2015. When operational, the plant will process municipal solid waste and organic waste into recycled products, solid recovered fuel and biogas for energy generation, and digestate for compost and fertilizer.
Shanks says that the facility will be one of the first where the company has located an MBT and AD plant on the same site and will treat up to 265,000 metric tons per year of household waste and a small amount of commercial waste from the three councils.
Under the agreement, SSE will use around half of the energy produced at its new multi-fuel plant at Ferrybridge to generate electricity.
In a statement, Peter Dilnot, Shanks Group’s CEO, says, "We are delighted that our joint venture, 3SE, has reached financial close on the contract. This contract combines Shanks' established expertise in advanced and sustainable waste processing with SSE's leadership in sustainable energy generation. Working together with the three councils we will maximize recycling and green energy production from waste."