2nd Sep 2005 12:24
Pennon Group PLC02 September 2005 2 SEPTEMBER 2005 PENNON GROUP PLC PENNON GROUP EXPANDS ITS WASTE MANAGEMENT BUSINESS Pennon Group Plc announces that its subsidiary, Viridor Waste ManagementLimited, has joined forces with Grundon Waste Management Ltd and set up a jointventure company, Lakeside Energy From Waste Limited, to build and operate anenergy from waste plant at Colnbrook near Slough. The joint venture is in line with Viridor Waste's strategy of capitalising onopportunities arising from the Government's developing waste strategy and willassist local authority customers in meeting their landfill diversion targets.Grundon is the largest family-owned waste management company in the UK. Itshead office is in Wallingford, Oxfordshire and its mineral extraction and wastemanagement operations cover mainly the Home Counties and East Anglia. The plant will have a capacity of 400kt per annum; investment is projected to be£160m in the period to 2008. Viridor and Grundon will each own 50% of the jointventure and the investment will be financed within normal project financeparameters. The plant will assist local councils in meeting their landfill diversion targetsand avoiding penalties under the Landfill Allowance Trading Scheme (LATS). Anumber of these councils are existing waste disposal customers of Viridor orGrundon. It will also provide power generation capacity of 32 megawatts ofelectricity which will be fed into the national grid. The plant will be builtat Grundon's strategically located site at Colnbrook near Slough which hasrelevant permissions and permits in place. The plant is scheduled to becommissioned mid-2008. Commenting on the project, Colin Drummond Chief Executive of Viridor Waste said"I am delighted to announce this joint venture and we are particularly lookingforward to developing the project with our new partners Grundon. TheGovernment's landfill diversion targets impose a significant challenge on localcouncils over the period to 2020. This plant will enable us to assist ourcustomers in meeting their targets and avoiding costs under the LandfillAllowance Trading Scheme". For further information: Colin Drummond, Chief Executive, Viridor Waste Limited, 01823 721 435Jo Finely, Investor Relations Manager, Pennon Group plc, 01392 443 401James Murgatroyd, Finsbury, 0207 251 3801 Additional information: Viridor Waste Management is one of the UK's leading waste management companiesand a market leader in recycling. It currently operates 22 regional landfilldisposal sites, numerous recycling facilities and over 150 waste processingsites UK-wide. Viridor provides a full range of waste and recycling services including advancedcomposting, glass reprocessing, materials recycling, waste to energy, transport,site restoration, and safe and efficient landfill disposal. Viridor alsogenerates 61 megawatts of renewable energy and has recently won UK industryawards for the best-run landfills in three out of five years. Viridor's stated strategy is to: • capitalise on its leading position in waste disposal by landfill; • exploit opportunities in renewable energy generation; and • pursue profitable opportunities arising from the UK Government's developing waste strategy. The company's sites are accredited to the ISO14001 Environmental ManagementSystem, the highest recognised international standard, which ensures continuousimprovement in environmental performance, and provides assurance to customersand communities alike. Landfill Allowances Trading Scheme (LATS): Article 5(2) of the EC Landfill Directive requires the UK to reduce the amountof biodegradable municipal waste (BMW) it sends to landfill. The Government hasintroduced the LATS (under the Waste and Emissions Trading Act 2003) as a meansof achieving the Directive landfill diversion targets. These targets are: by2010 to reduce the amount of BMW going to landfill to 75% of that produced in1995, 50% by 2013 and 35% by 2020. Landfill allowances have been allocated foreach local authority. This will require a substantial increase in capacity foralternative treatment processes to landfill, an important alternative beingenergy from waste. A fixed penalty of £150 per tonne in England will beincurred if an authority breaches its landfill allowances in a scheme year;flexibilities in trading, banking and borrowing allowances will assist wastedisposal authorities in meeting their obligations. As a result localauthorities are now actively seeking solutions to achieve their landfilldiversion targets. 2 September 2005 www.pennon-group.co.uk End transmission This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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