(Alliance News) - Biffa PLC said Monday it has reached financial close on the Newhurst energy-from-waste facility in Leicestershire, alongside its joint venture partners Covanta Holding Corp and Macquarie's Green Investment Group Ltd.
The waste management company said the total project construction cost, excluding financing costs, will be GBP285 million to GBP295 million, with Biffa owning 50% of the facility.
Its financial commitment to the project will amount to GBP45 million, which will be invested over the coming three years from existing facilities, the company said.
Construction works of the facility will "begin shortly", the company said, and will create over 300 jobs during the construction period.
Biffa will provide 70% of the fuel for the facility each year from its existing local waste collection services, while Covanta will supply operations and maintenance services.
The new facility is expected to commence operations in 2023.
Biffa said the new facility supports the UK government's "drive to both reduce reliance on landfill and treat more non-recyclable waste at home, reducing dependence on export".
The Newhurst facility will provide 350,000 tonnes of annual treatment capacity of non-recyclable waste and will also generate up to 42 megawatts of electricity, enough to power around 80,000 homes, the company noted.
Biffa also said it continues to make "good progress" with the planning of the second energy-from-waste facility, Protos, in Cheshire.
However, the development process is taking longer than anticipated and has resulted in a delay to financial completion, the company noted.
Michael Topham, chief executive officer, said: "Reaching this milestone at the Newhurst facility, along with our ambitious investments in recycling, are vital steps in the delivery of our strategic investment plans."
"We look forward to working with our partners to further reduce the UK's reliance on landfill or export for managing its non-recyclable waste," Topham said.
Biffa shares were trading 0.4% higher in London at 286.00 pence each on Tuesday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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