The North London Waste Authority (NLWA) and the three shortlisted companies on the Authority's 'Fuel Use' procurement have announced details of proposed solutions.
The procurement is one of two that NLWA is running to provide a long term and sustainable waste management solution for North London, and is for the use of 250-300,000 tonnes of Solid Recovered Fuel (SRF) - a fuel that would be created from the 500-600,000 tonnes of North London's waste that cannot be recycled or composted. A separate procurement is being run that will involve recycling or composting half of North London's waste, producing the fuel and minimising the landfilling of municipal waste.
Chair of the NLWA, Councillor Clyde Loakes said:
"We are very pleased with the market response to the procurement. The three bidders have had to bring forward good environmental and commercial solutions to get to this point in the procurement process and they have done so.
"We have set out to allow the energy opportunity afforded by North London's residual waste to be taken to where businesses have energy needs and to thereby move away from the use of fossil fuels. At this time of challenging economic circumstances I am especially pleased to see how bidders are making the links to employment and minimising the costs to local council tax payers including by seeking to access renewable energy subsidies.
"The proposals for sustainable transport solutions such as water and rail, which will keep trucks off the road, are also very welcome".
The proposed solutions from the shortlisted Fuel Use Contractors are:
Covanta Energy is proposing a Combined Heat and Power plant at the Tate & Lyle sugar refinery site at Silvertown, East London. The power plant will meet the energy demands of sugar production undertaken on site in a sustainable and cost effective way, helping to ensure competitive operations at a site where 800 people are employed. The power plant will create up to 80 new permanent jobs and 350 jobs during construction.
The Covanta proposal involves the transport by barge of SRF from Edmonton to Silvertown and this will support the further development of London rivers for freight transport use. Covanta will shortly begin consultations with the local community and relevant authorities ahead of a planning application in mid 2012.
E.ON/ Wheelabrator Technologies are proposing a Combined Heat and Power plant at DS Smith Paper's site at Kemsley Mill, Sittingbourne, Kent. The power plant will help meet the energy needs associated with the production of Corrugated Cardboard Material from recycled paper, card and fibre at the mill in a sustainable and cost effective way, helping to ensure competitive operations at a site where 800 people are employed.
The mill is the UK's largest waste paper recycler; producing more than 850,000 tonnes of 100 per cent recycled paper and pulp a year. The power plant will also create around 50 new jobs as well as associated off-site employment.
The SRF from North London would be transported sustainably by rail, continuing the NLWA's use of rail transport. Planning permission for the power plant was granted by Kent County Council in April and a permit to operate was issued by the Environment Agency in August.
Veolia Environmental Services (UK) Plc are proposing a Combined Heat and Power enabled power plant at an existing industrial site with planning permission to operate an ashphalt coating plant, an aggregates railhead and a readymixed concrete plant. The site is in Hoddesdon, Hertfordshire, 6 miles from the boundary of North London and adjacent to an existing Scottish Power plant. The plant will generate renewable electricity and discussions are ongoing with local businesses about the use of heat that can be supplied by the plant. The power plant will create 45 permanent new jobs and approximately 300 jobs during construction.
The company's outline solution involves the transport by rail of SRF from north London and this will continue the NLWA's current use of rail transport. It is beginning consultation with the local community and relevant authorities ahead of a planning application in the first half of 2012.
The winning proposal will be selected using an evaluation framework that focuses on the quality and cost of the solution. The carbon impact of proposals, including that of the transport solution proposed, is a key element. The Authority's procurement timetable aims to select a preferred bidder in October 2012 and to award a contract in March 2013.
Read more about the NLWA's procurement, including frequently asked questions about the Fuel Use procurement.