A contract worth £460 million to build an energy from waste facility for Leeds City Council has been signed by Veolia Environmental Services.
The 25-year PFI contract will see Veolia build and operate a recycling and energy recovery facility to treat the residual waste from the city.
Subject to obtaining the necessary planning consents, the facility will be built in the East Leeds Cross Green Industrial Area.
It will produce enough energy to power 20,000 homes and Veolia hopes to develop a cogeneration plant to supply heat to local users.
It is scheduled to open in spring 2016 after construction begins in summer 2013.
Veolia Environmental Services chief executive Jerome Le Conte said: “This remarkable facility reflects our strategic commitment to the UK market and our sustainable development approach that is reflected in the construction of new waste treatment and energy recovery plants delivering exceptional environmental performance.
“In the United Kingdom, Veolia Environmental Services is currently involved in 12 PFIs/PPPs. This type of partnership contract will help make it possible to achieve the targets set under the European Landfill Directive.
“Veolia Environmental Services made the strategic decision, well before the market, to make waste a resource. In the United Kingdom in particular, clients are turning to us for innovative solutions that enable them to improve their environmental and energy performance.”
Veolia was announced as the preferred bidder for the contract in January.