A consortium led by SITA UK has been selected as preferred bidder for £900 million resource recovery contract with West London Waste Authority (WLWA).
The other consortium members for the 25-year contract are Lloyds Banking Group and ITOCHU Corporation.
Around 300,000 tonnes of residual household waste each year will be treated from the London Boroughs of Brent, Ealing, Harrow, Hillingdon, Hounslow and Richmond-upon-Thames.
The waste collected from 1.4 million residents will be managed in a new energy from waste facility in Severnside, South Gloucestershire and will be transported by rail from West London.
As a result, SITA UK will take over the operation of two rail-linked waste transfer stations in West London and transported to the Severnside Energy Recovery Centre (SERC).
SITA UK chief executive David Palmer-Jones said: “We are delighted to be named preferred bidder for this major waste management contract in West London.
“It is great news for the six boroughs and their residents, knowing that their waste materials will be used to produce energy and avoid landfill.
“We look forward to working with West London Waste Authority and developing the key infrastructure in this transformative partnership.
“Contracts like this make the circular economy a reality and show that environmentally sustainable solutions offer nothing other than business sense – extracting energy and employment from materials which too often are treated as waste.”
WLWA chair Cllr Bassam Mahfouz said: “For too long we in West London have been sending the waste we didn’t recycle to pile up in landfills.
“This new contract means that virtually nothing will be sent to landfill and our waste will be turned into energy, saving the environment, and saving each borough money. We have also built in that we want to continue increasing recycling, which is among the highest in London.”