Pennon wins London waste contract

Water and waste group Pennon has signed a 25-year South London Waste Treatment Services Public Private Partnership (PPP) contract for the London Boroughs of Croydon, Kingston, Merton and Sutton.

Water and waste group Pennon has signed a 25-year South London Waste Treatment Services Public Private Partnership (PPP) contract for the London Boroughs of Croydon, Kingston, Merton and Sutton.

Pennon's subsidiary, Viridor South London, will treat the boroughs' residual municipal waste through the financing, construction and operation of a new Energy Recovery Facility (ERF) at Viridor's landfill and recycling site in Beddington, Sutton.

Viridor will treat around 200,000 tonnes of waste a year and the contract is designed to achieve around 92% landfll diversion. The ERF will have additional capacity to treat around 75,000 tonnes of commercial and industrial waste and will have a power generation capacity of 26 megawatts of electricity.

Viridor will invest around £200m in the plant, financed from internal funds as required. It is expected to be earnings enhancing in its first full year of operation.

Colin Drummond, the Chief Executive of Viridor, said:"The Beddington ERF in south London will make a major contribution towards the Capital's ambitions to achieve self-sufficiency in waste treatment and to maximise renewable energy generation. It is a further important step in the roll out of Viridor's PPP pipeline and represents a key part of Viridor's growth strategy."

The contract is subject to the approval of planning permission for the plant, which was submitted to the council in August.

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

NS&I brings back one-year fixed bonds with highest rates since 2010
Personal finance

NS&I brings back one-year fixed bonds with highest rates since 2010

NS&I’s one-year fixed bonds are back on sale after being pulled off the market in 2019 - but is the rate any good?
1 Feb 2023
How to invest like an ISA millionaire
Investments

How to invest like an ISA millionaire

We reveal the top funds and trusts ISA millionaires pumped their money into
6 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023