Cory Riverside Energy is to partner with specialist energy from waste (EfW) contractor Hitachi Zosen Inova (HZI), giving plans to build a new EfW plant in south east London a significant boost.
Under the deal, the two companies have entered into a joint development agreement, which will see HZI act as the engineering, procurement and construction (EPC) contractor for the project.
Plans for the new Riverside Energy Park are still in their infancy, but Cory said it would now work together to develop the scheme, secure planning consent and the environmental permits. On gaining the approvals it said it would then enter into a full EPC agreement with HZI to build the facility.
Cory, however will remain the sole investor, owner and operator.
It is not the first time the companies have worked together. HZI previously delivered Cory’s existing Riverside Energy recovery facility on the adjacent site.
There have been a number of high profile failures to build EfW plants in recent years. In September last year, costs incurred from the termination of a contract to build an EfW plant in Glasgow caused Interserve to issue a profit warning. Similarly, in August last year Costain agreed exit terms for its problematic Greater Manchester waste management PFI contract.
However, speaking to New Civil Engineer, Cory Riverside Energy chief executive Nicholas Pollard said this project would be de-risked by collaborating with the specialist contractor at such an early stage and it would build on its experience and success with its first EfW plant.
“This is such a smart way to do business and a really low risk way to do construction,” said Pollard. “Instead of an adversarial approach and having all the risks of escalation of costs and time, we’re working with HZI right from concept to design out the risks.
“We’re particularly able to do that because this is the second plant on the site. Everything from ground risk to process risk to functionality, the engineering of the throughput, the logistics we’re able to design not only from first-hand knowledge of doing it, but first-hand knowledge of doing it with one another.
“This is a really good open approach.”
Construction on the new plant is set to start in 2021, subject to planning approval, and expected to operational by 2024.
When complete, the new plant will work together with the existing Riverside Energy Recovery Facility and carry out a range of integrated, low carbon technologies including waste energy recovery, anaerobic digestion, solar panels, and battery storage.
The new park will be capable of generating sufficient power and heat to supply the equivalent of 140,000 of London’s homes by processing around 650,000t of residual waste each year which Cory said was currently sent to landfill.
“In selecting a technology partner for the second plant it was only natural that HZI and Cory would work together again,” said Pollard. “We will develop an even better scheme to meet the waste disposal needs of London, its businesses, and its residents.”