Consortium reach financial close on Newhurst energy-from-waste facility
In the United Kingdom (UK), joint venture partners Covanta Holding Corporation (Covanta), Biffa plc and Macquarie’s Green Investment Group (GIG), have announced that the 42 MWe Newhurst Energy-from-Waste (EfW) Facility (Newhurst) in Leicestershire, England, has reached financial close. The project combines Biffa’s expertise and scale in waste management and control of significant feedstocks with Covanta and GIG’s operational and development experience in EfW.
US-headed waste management major Covanta and GIG will together own 50 percent of the state-of-the-art facility, with Biffa, the primary waste supplier for the facility, owning the remaining half of the project. Covanta will operate the facility under an initial 20-year long operations and maintenance O&M agreement.
The Newhurst EfW facility will provide important sustainable waste treatment capacity in the drive to move non-recyclable waste away from landfill and combat climate change. Today’s announcement marks our third of four initial development projects to reach financial close with Green Investment Group and our first project with Biffa. Together, we have created a powerful partnership that will provide meaningful returns in our pursuit to protect tomorrow, said Covanta CEO and President Stephen J. Jones.
Strategically located just off the M1 motorway in the East Midlands, the Newhurst EfW facility is a significant addition to the UK’s waste management infrastructure. It supports both the Government’s drive to reduce reliance on landfill and the UK’s ability to treat more non-recyclable waste without relying on export to European facilities. Biffa will provide 70 percent of the fuel for the facility from its existing local waste collection services.
Biffa has a leading role to play in developing the recycling and energy from waste facilities that the UK needs if it is to become a low-carbon, resource-efficient economy. Reaching this milestone at the Newhurst facility, along with our ambitious investments in recycling, are vital steps in the delivery of our strategic investment plans. We look forward to working with our partners to further reduce the UK’s reliance on landfill or export as a more sustainable solution for managing non-recyclable waste, said Michael Topham, Chief Executive, Biffa.
The facility will use proven technology to provide up to 350 000 tonnes of annual treatment capacity for non-recyclable waste and will also generate up to 42 MW of electricity, enough to power around 80 000 homes.
To increase resource efficiency, we need the right infrastructure. Together, GIG and Covanta are developing a pipeline of projects that will form the backbone of the UK’s next-generation waste management system. Our ongoing partnership with Covanta is helping the UK reduce reliance on landfill for non-recyclable waste, creating a cleaner, greener environment for all. The Newhurst facility is an exciting new addition to that partnership and our first project investing alongside Biffa, said Edward Northam, Head of Green Investment Group Europe.
Covanta will supply technical oversight during construction of the facility which is expected to take approximately 39 months to complete and will be led by Switzerland-headed Hitachi Zosen Innova (HZI), a global leader in EfW engineering and construction under a turnkey Engineering, Procurement and Construction (EPC) contract.
Over 300 jobs will be created during the construction period, providing related benefits to the local economy. Many opportunities will also be created for the local supply chain with a commitment from the project to purchase goods and services from nearby companies wherever possible.