Viridor and north-east councils reach financial close on tees valley energy recovery facility

Viridor and Tees Valley Energy Recovery Limited (TVERL) have today announced that financial close has been reached on the Tees Valley Energy Recovery Facility (TV ERF). 

The signing of contracts, with a value of £2bn over 29 years, marks a key milestone towards delivering a safe, reliable and sustainable long-term solution for treating residual waste in the North-East. 

TVERF is a public-private partnership (PPP) infrastructure project, which will allow seven partner councils (Darlington, Durham, Hartlepool, Middlesbrough, Newcastle, Redcar & Cleveland and Stockton) to have full control over the management of residual waste – the waste left over after recycling from across the region. The partnership will ensure this waste is safely treated into the future, alongside efforts to reduce, reuse and recycle as much material as possible. 

Expected to be operational from 2030, TV ERF will be a state-of-the-art two-line facility, capable of processing around 450,000 tonnes of residual waste per year. It will generate up to 49.9 MW of baseload electricity for the local electricity grid each year – enough to power the equivalent of 60,000 homes. The facility is being built on disused industrial land at Teesworks in Redcar, supporting the regeneration of the area, while also creating new local employment opportunities. 

The seven partner authorities are each represented on the board of a Special Purpose Vehicle company, TVERL, which has contracted with Viridor to design, build, finance and operate the energy recovery facility. 

Speaking on behalf of the partner authorities, Denise McGuckin, Chief Executive of Hartlepool Borough Council, said: “We are very proud to reach the delivery phase of this critical infrastructure project for the North-East, which will provide a safe, reliable, sustainable and affordable solution for the waste left over after recycling and re-using as much as we can.

“We are delighted to partner with Viridor, which is a highly experienced operator of UK energy recovery infrastructure, and we look forward to working with them to deliver, not just this vital facility, but a wider range of benefits – including employment, training and economic opportunities – to the communities we serve.” 

“Today we are celebrating the fact that Tees Valley Energy Recovery Facility has reached financial close and will join the growing Viridor EfW fleet. This project underpins our continued ambition to offer a scalable, safe and long-term solution to manage residual waste, while generating power for the local grid,” says Richard Belfield, Group Development Director at Viridor

Construction is due to begin later this year, with Kanadevia Inova selected as the Engineering Procurement and Construction (EPC) contractor on the project. Viridor and Kanadevia Inova have a strong relationship, working together on a number of projects, including most recently Thameside ERF in the Port of Tilbury, Essex, and Westfield ERF in Fife, Scotland. Development of the TV ERF will take Viridor’s Energy from Waste fleet to 13 facilities across England, Scotland and Wales.  

Richard Belfield adds: “Viridor is proud to be working with the seven councils and Kanadevia Inova as we progress this project. The plant will provide local jobs and economic regeneration, as well as being a responsible neighbour to the local community and the wider region.”

“The Kanadevia Inova team is delighted to have signed another EPC contract with Viridor and, with Notice to Proceed being granted, we look forward to starting full construction works on the Tees Valley Energy Recovery Facility,” says Fabio Dinale, Executive VP of Business Development at Kanadevia Inova.  

Under the terms of the procurement specified by the partner authorities, Viridor has committed to delivering an extensive package of community benefits over the life of the contract – which includes supporting hundreds of jobs during construction and the creation of 50 full-time, skilled roles once the plant is operational, along with training and supply-chain opportunities. Viridor also plans to extend its WeShare Community Fund to support initiatives and projects that matter most to residents in the local area. 

Regular updates on the progress of the TV ERF project will be shared through newsletters and on the Viridor website. To find out more about TV ERF, please visit our website: viridor.co.uk/energy-from-waste/our-facilities/tees-valley-erf