Viridor has partnered with Doosan Babcock in order to complete work on the Glasgow Recycling and Renewable Energy Centre, parent firm Pennon Group has confirmed in a trading update today (9 February).
The Glasgow-based engineering, procurement and construction contractor replaces Interserve on the project, which exited the energy from waste market in August last year.
The Glasgow Recycling and Renewable Energy Centre will be completed by Doosan Babcock
Viridor’s decision to terminate its contract with Interserve followed ‘repeated delays’ to the completion of the 200,000 tonnes-per-year capacity plant (see letsrecycle.com story).
The facility is being constructed at Glasgow city council’s waste treatment plant at Polmadie, as part of a £254 million contract signed between Viridor and the local authority.
Babcock
According to Pennon Group, Doosan Babcock has been chosen to finish delivery of the plant due to its ‘experience in delivering large capital projects in the energy and power space’.
The contractor is ‘currently finalising an assessment and project plan for the site’. While an updated timetable has yet to be announced, Pennon Group confirmed in September 2016 that the plant was receiving ‘some waste’ (see letsrecycle.com story).
Despite setbacks at the Glasgow plant, Pennon Group has reported Viridor is still on track to contribute an estimated £100 million in underlying earnings from its energy from waste portfolio in 2016/17.
Growth in this division is being delivered through Viridor’s portfolio of 12 EfW facilities, including a 33MW plant in Avonmouth which will treat up to 320,000 tonnes of waste per year and take 35% of feedstock from councils in Somerset (see letsrecycle.com story).
Manchester
Pennon Group has also stated that Viridor recognises the financial challenges faced by its biggest client, the Greater Manchester Disposal Authority due to ‘prolonged austerity’.
Viridor has recently launched an updated brand image
In a trading update published by John Laing Group Plc in December, it was noted that the Authority is ‘not satisfied’ with the current status of the £3.2 billion contract and is seeking ‘significant savings’ (see letsrecycle.com story).
The contract has delivered a 9% increase in landfill diversion and a 12% increase in recycling rates for GMWDA since it was signed in 2009.
The update notes: “Viridor is working together with its partners to respond. Modifications are being undertaken and funded at a handful of sites by the original construction contractor Costain PLC, to ensure the facilities operate effectively for the mix and profile of waste airisings.
“Diversion of waste from landfill remains ahead of contractual commitments and Viridor and its partners are keen to ensure this progress is able to continue.”
The post Viridor selects Babcock to complete Glasgow EfW delivery appeared first on letsrecycle.com.
Source: letsrecycle.com Waste Managment
