The Greater Manchester Waste Disposal Authority (GMWDA) confirmed this week that it wants to break away from its 25-year waste management contract signed in 2009.
Viridor and John Laing, as joint venture Viridor Laing Greater Manchester (VLGM), expect compensation after revealing it and Ineos Runcorn (TPS) had invested about £72.3m in the contract so far.
VLGM said in statement issued by Viridor parent firm Pennon that “financial challenges due to prolonged austerity” were the main reason for GMWDA seeking the early break. It also said it expected “weeks” of discussion before the contract would be officially ended.
The full contract was to be worth £3.8bn to VLGM and started a construction programme aimed at moving waste from Greater Manchester away from landfill to energy recovery and recycling.
Much of the money spent so far by the joint venture and Ineos Runcorn went on the development of the two phases of the Runcorn energy-from-waste plant. As well as a refuse-derived fuel (RDF) production facility, which supplies the EfW plant, and four biogas producing facilities.
Phase one of Runcorn is owned by Ineos Runcorn, a joint venture between chemical firm Ineos, Viridor and John Laing. Phase two is owned by solely by Viridor.
The combined first and second phases can process up to 850,000 tonnes of RDF annually. The plant’s capacity is about 80MW of electricity and 52MW heat in the form of steam.
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