Viridor takes on short-term Merseyside waste contract

By Edward Perchard | 14 August 2015 | Add a Comment

Operations have started on a new short-term residual waste contract between the Merseyside Recycling and Waste Authority (MRWA) and waste management company Viridor.

Under the terms of the contract, 20,000 tonnes of Merseyside’s waste will be diverted from landfill. Viridor takes on short-term Merseyside waste contract

The collected residual waste will instead undergo pre-treatment into a refuse derived fuel (RDF) at local waste service company WSR Recycling Ltd, before being sent to Viridor’s Runcorn Energy Recovery Facility (ERF) where it will be incinerated to generate electricity and heat.

The Runcorn ERF can reportedly receive up to 850,000 tonnes of RDF a year, which Viridor claims makes it one of the largest incinerators in Europe.

Short-term deal will precede delivery of controversial 30-year contract

The contract began on 1 July 2015 and will run for an initial nine months (until 31 March 2016). There is then an option of a further six-month extension.

The possible extension would act as an interim depending on the progress of infrastructure construction on the MRWA’s controversial 30-year disposal contract with SITA Sembcorp UK, thought to be worth £1.18 billion.

The Merseyside Waste Disposal Authority (MWDA), the statutory name of the MRWA, awarded the SITA Sembcorp UK consortium the Merseyside and Halton Waste Resource and Recovery contract in April 2013.

But the decision to award the contract, which included the construction of an energy-from-waste incineration facility at the Wilton International site in Teesside, was subject to a legal challenge (later settled out of court), by rival bidder Covanta UK, which said the MRWA’s decision process was ‘flawed’ and did not take into account the economic savings of the Covanta bid.

Liverpool Mayor Joe Anderson also criticised the contract decision, saying that by taking the waste to a new facility in Teesside, as opposed to Covanta’s proposed Ellesmere Port site near Chester, both the environment and local economy would suffer.

The construction of the Wilton 11 energy from waste plant has also been the subject of criticism from national trade unions, who have organised several demonstrations against the lack of job opportunities for local workers and the payment of EU workers under the agreed industry rates.

SITA Sembcorp UK has confirmed, however, that the contract reached financial close in December 2013 and that construction of the Wilton facility and rail transfer station at Knowsley is progressing as contracted and remains on schedule to commence delivery of the long-term MRWA contract in 2016.

Contract provides a locally-led waste solution

Alex Murray, Director of Operations for the MRWA, said: “We are pleased to have established a waste solution which provides greater environmental benefits to the local community such as landfill diversion and that offers a reduced cost to the residents of Merseyside.”

Richard Jenkins, Viridor’s Regional Managing Director, added: “Viridor is delighted to be working in partnership with the MRWA to deliver a locally-led waste solution that brings both economic and environmental benefits to Merseyside.

“This new partnership will result in more waste being diverted from landfill, sending RDF to Runcorn ERF, which provides renewable electricity and heat to the adjacent INEOS Chlor site.”

Find out more about the Merseyside Recycling and Waste Authority.