Fladgate advises Swiss construction company on £244m energy project

Our team: Gillian Birkby

Fladgate LLP has acted for Zurich based client Hitachi Zosen Inova AG (HZI) on a contract to construct a new 34 megawatt energy recovery facility in South Gloucestershire, as part of a public private partnership (PPP) contract between the West London Waste Authority and a consortium led by SITA UK. The overall project value is £244m.

HZI is expected to begin construction of the Severnside Energy Recovery Centre in December 2013. A consortium of SITA UK, Scottish Widows Investment Partners and Itochu Capital signed a 25-year contract with the West London Waste Authority on 27 November 2013 to convert up to 300,000 tonnes of municipal waste material to energy each year.

Residual household waste material from the London boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond-upon-Thames will be transported by rail to the Severnside Energy Recovery Centre. The facility will produce enough electriciy to power the equivalent of 50,000 homes and could also provide heat to local businesses – further increasing its environmental performance. This solution will enable the West London Waste Authority to divert 96 per cent of its waste from landfill and is expected to save two million tonnes of CO2 equivalents over the duration of the contract.

Chief Executive Officer of SITA UK, David Palmer-Jones said: “We chose Hitachi Zosen Inova to deliver the energy from waste technology at the Severnside Energy Recovery Centre because of their long-standing track record and proven technology, but also because of their ability to innovate to ensure that the facility is at the forefront of efficiency and environmental performance.”

Zurich-based HZI is a global leader in energy from waste, operating as part of the Hitachi Zosen Corporation Group.

Commenting on the project, Fladgate’s head of construction, Gillian Birkby, said: “We have advised HZI on a number of successful projects in the UK with a combined contract value of over £3bn. We are delighted that they have secured yet another contract which will deliver sustainable benefits.”

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