Viridor

Viridor to inves up to £800M in Scotland's 'Next Generation' Green infrastructure

1 February 2010

Scotland's leading recycling, energy recovery and waste management company today announced plans to invest up to £800m over the next five years in ‘next generation' green infrastructure to turn the Scottish Government's zero waste policy into practice.

Part of the FTSE 250 Pennon Group, Viridor provides recycling and waste services to 96% of Scottish local authorities and a host of Scotland's leading businesses. Investment will finance the development of new, state-of-the-art strategic waste infrastructure, enhancing current facilities, and on acquisitions to drive business development and help the nation meet ambitious zero waste targets.

The company, which has invested £30m in its Scottish expansion in the last five years, has seen its business transform from a mid-sized landfill operator to Scotland's leading recycling, energy recovery and waste management business. In addition to acquiring Scotland's leading electrical recycling and glass recycling facilities in Perth and Bonnyrigg, Environment Secretary Richard Lochhead MSP opened the nation's most advanced materials recycling facility - a £7.1m investment by Viridor - at Bargeddie in Lanarkshire in June last year.

The company, whose clients range from Edinburgh, Glasgow and Highland Councils to Coca Cola Enterprises and BAE Systems, and which has over £200m stalled in the Scottish planning system, today also signalled the green light for an appeal to the Scottish Ministers for its proposed £193m merchant energy from waste facility at Oxwellmains in East Lothian. The plan, recommended for approval by council planners and described by SEPA as the "best practical environmental option", would recover enough energy to power 39,000 homes and 17mw of heat from ‘residual waste' left after recycling. Plans by the company for a sustainable road to rail transfer station for waste at Portobello, Edinburgh, are also set for a public inquiry commencing 8th February.

Speaking to staff from across the Scottish workforce, Mr. Colin Paterson, Scottish Regional Director for Viridor, Chair of the Scottish Environmental Services Association and Chair of the Scottish Government's Waste Working Group reporting to the Cabinet Secretary, will say:

"From wind farms to waste management, Scotland is undergoing a green revolution and, as the nation's leading recycling and waste company, Viridor is at its core. Against a backdrop of sustainability, increasing landfill levies and ambitious targets for recycling, the Scottish Government's zero waste plans set an unambiguous direction of travel - waste minimisation, a new momentum for recycling, landfill reduction and a clear role for energy from waste, recovering green heat and power from what remains.

"But zero waste won't happen without a network of ‘next generation' green infrastructure on the ground. And, in this new age of austerity in public finances, it won't be realised without increased partnership working between the public and private sector.

"Viridor's planned £800m investment is vital to Scotland's sustainable future. It will not only develop our industry leading position in offering the latest technologies to help Scottish council's and communities recycle more and avoid costly landfill levies, but will deliver for Scottish business - the next key challenge on Scotland's zero waste journey."

Addressing the context for investment, Mr. Paterson will say:
"Viridor's commitment to Scotland, Scottish authorities and businesses is unquestioned. We've invested heavily over recent years in the nation's most advanced recycling and waste infrastructure - infrastructure which has enabled many council's to expand the services they offer to residents, and businesses to enhance their environmental performance. Our investment is ongoing, with the imminent expansion of our Edinburgh trade waste services. Our sites generate renewable power, and our new investment will take this further.

"Our investment however relies on a positive regulatory and policy context. Scotland is already in danger of failing on key commitments if vital infrastructure is stalled any further. In addition to clarity and security, we need action from government to unlock the £200m of investment currently blocked in the planning process and confidence to bring forward further programmes.

"Scotland can't afford to wait another two, three or four years in planning delays. Viridor is ambitious about the future, we have the ability to deliver and have a clear direction on how to get there. We know the recycling and energy recovery infrastructure we need. Working together with government we need to transform policy into practice."

Richard Lochhead MSP, Scottish Cabinet Secretary for Rural Affairs and the Environment, said:
"The Scottish Government welcomes this investment by Viridor, which is exactly the kind of commitment which will help us realise our vision of a zero waste Scotland. "Our waste targets are challenging, which is why we need involvement like this from major players, which will not only help protect our environment but provide a welcome economic boost."

Secretary of State for Scotland Jim Murphy MP, added:
"This investment announcement is excellent news for Scotland, and a positive sign of private sector economic activity as the UK economy moves into recovery.

"Governments across the world are setting tough targets for reducing waste, promoting recycling and moving towards zero waste. To make targets more than talk, we need the right green infrastructure in place. This investment will play a significant part in helping us meet the challenge in Scotland."