SITA UK is doubling its energy-from-waste capacity on Teesside to create one of the largest facilities of its kind in the UK.
A consortium led by the waste giant will build a mirror image of its Haverton Hill energy-from-waste plant, creating more than 160 new jobs, after winning a major contract with South Tyne and Wear Waste Management Partnership.
The new plant, next-door to the existing facility, will take 190,000 tonnes of residual household waste a year and send enough green electricity back to the grid to power 37,500 homes.
The state-of-the-art facility will also supply neighbouring industries with low-cost heat.
Bosses say the work will make Teesside the largest operational energy from waste centre outside London, boosting the area’s plans to become a hub for waste technology.
In August, SITA UK joined forces with Wilton site owners Sembcorp UK to announce plans for Wilton 11, a 35 megawatt green power plant. The plant, believed to be worth around £200m, will also turn household waste into super-green energy and create 50 more permanent jobs.
Gary Mason, general manager for SITA UK Energy Solutions, said: “Teesside can be a centre of excellence, not just for energy but recycling and recovery of waste.
“We are becoming a hub because of the industrial skills base in the area.
“This site will be a mirror image of the existing facility.
“We will have two new transfer stations and a twin line energy-from-waste plant.
“We will also be able to help nearby businesses by providing heat.
“There is already an existing heat network, run by GrowHow, serving the big companies. We will fit neatly into the existing heat network and help facilitate further growth for industry at Haverton Hill.
“We will also have additional spare capacity for industrial and commercial waste - this gives Teesside companies a green option for disposing of their rubbish.”
Around 25 jobs will be based in South Tyne and Wear, 100 will be in construction of the new plant, and the rest will be based on Teesside.
The consortium includes SITA UK, Royal Bank of Scotland and Catalyst Lend Lease.
The South Tyne and Wear Waste Management Partnership was awarded £73.5m of Private Finance Initiative (PFI) money from the Department for Environment, Food and Rural Affairs (Defra) in July 2008, towards the development of a waste treatment facility.
Last year SITA UK built a £70m extension to its existing facility on behalf of Northumberland County Council as part of a 28-year Private Finance Initiative (PFI) contract signed with SITA UK, in a move that created a further 20 jobs for Teesside.
The new plant will represent a total carbon saving of 64,000 tonnes of a year which, compared to the current arrangements of sending waste to landfill, is the equivalent of removing 21,700 cars from the road.
Mr Mason added planning permission has been granted and work is due to start early next year in time for a 2013 opening date.
Other recent waste technology wins for Teesside include Air Products, which chose Billingham over a number of sites across Europe to build its revolutionary waste-to-energy gasification plant.