Covanta and GiG reach financial close on Rookery South EfW facility
In the United Kingdom (UK), US-headed waste management major Covanta Holdings Corporation (Covanta) and UK-headed Green Investment Group Ltd (GIG), part of Macquarie Group (Macquarie) have jointly announced that that the Rookery South Energy Recovery Facility in Bedfordshire has reached financial close and will commence construction. Covanta and GIG will each own 40 percent of the state-of-the-art facility, with primary waste supplier Veolia ES (UK) Ltd (Veolia) owning the remaining 20 percent.
The 64 MWe Rookery South Energy Recovery facility will provide 545 000 tonnes of annual treatment capacity for non-recyclable waste, further enabling the UK to achieve national self-sufficiency in managing waste and compliance with landfill diversion targets.
We are pleased to have reached this key milestone on the Rookery project, which is a major component of our UK development plan and the second of four initial projects to move forward with GIG. The Rookery project brings into full view the capabilities of our partnership with GIG and our commitment to the UK market, and we look forward to investing in the local community and serving the region with much-needed sustainable waste treatment. Rookery also marks the first project in the UK where we will assume an operating role and we are thrilled to contribute this core expertise to the project said Covanta CEO and President Stephen J. Jones.
Veolia will deliver the majority of Rookery’s waste supply under a long-term contract, with the balance of the waste sourced through other commercial, industrial and municipal counterparties.
Veolia is excited to play its part in this major infrastructure project of which we have now delivered 10 in the UK. We are happy to have been able to share our expertise in technical design and construction, as well as waste supply and energy markets optimization, which have been integral to its success to date. Rookery will provide much needed residual waste recovery capacity, the majority of which Veolia will be supplying from its local authority and commercial customers, to create energy for the grid from non-recyclable waste to reduce the need for landfill, said Gavin Graveson, Executive Vice-President for Veolia UK & Ireland.
Construction of the facility will be led by Switzerland-headed Hitachi Zosen Inova AG (HZI) under a turnkey engineering, procurement, and construction contract and is expected to take approximately 36 months to complete. Over 300 jobs will be created during the construction period providing related benefits to the local economy. Covanta will provide technical oversight during construction and will supply operations and maintenance services when the project commences operations in 2022.
GIG and Covanta have the ambition to deliver a joint portfolio of world class waste management infrastructure that will reduce landfill, lower emissions, and transform two million tonnes of residual waste a year into heat and power for communities and industry across the UK. GIG’s mission is to accelerate the transition to a greener global economy, and I believe Rookery can play an important role in helping the UK meet its goal of maximising the value of our resources to create a cleaner, greener, healthier planet, said Ed Northam, Head of GIG Europe.