A consortium led by Swiss waste to energy firm, Hitachi Zosen Inova, has secured a 20-year municipal waste service contract from the Eastern Metropolitan Regional Council (EMRC) in Perth, Western Australia.
The EMRC constitutes six local governments and around one-third of Perth’s metropolitan area encompassing a land area of about 2100 square kilometres and an estimated population of 366,000.
A call for tender was released by EMRC in August 2017. According to HZI, following thorough tender process, the EMRC decided that the best value for the disposal of its residual waste was presented by a consortium which it led.
HZI’s other partners in the project are New Energy Corporation (New Energy), a Perth-based waste to energy business which has been developing the East Rockingham site since 2013, and Tribe Infrastructure Group (Tribe), an international advisory and investment firm specialising in the development and financing of complex infrastructure transactions.
The EMRC will now meet with its individual member Councils to get approval for various agreements required under the arrangement with HZI. This process must be completed before the award of tender can be finalised and to allow the project to proceed and for waste deliveries to commence in 2021.
Design, Build, Operate and Finance of a 300,000 t/a Waste to Energy Plant
The plant will be located in East Rockingham in the Perth region. The Resource Recovery Facility will convert approximately 300,000 tonnes of waste per year into baseload renewable energy, producing 28MW of electricity at full capacity — enough to power 36,000 homes.
The project represents a $400 million investment in the Perth area and will create 300 jobs during construction and 50 new full-time jobs throughout its 30+ year operating life and is expected to divert 96% residual waste from landfill. HZI said that around one third of the investment will flow back into local, regional and Australian businesses.
Besides the turn-key plant delivery, HZI will operate and maintain the plant in a joint venture together with its local parter New Energy for at least 20 years.
“We see the ERMC contract as break-through in Australian market leading to further projects in Oceania,” said HZI CEO Franz-Josef Mengede. “Importantly, we stay with the project from conception through construction, and, once the project is commissioned, we then lead the operations and maintenance activities for the life of the plant. This continuity will ensure Perth’s first energy-from-waste project is a successful one.”
The consortium is now working through pre-engineering, financing and the update of the site environmental approval. The project is scheduled to start construction in Q3 2018.
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