Renewi has secured a 20-year contract to supply refuse derived fuel (RDF) to the new Ferrybridge Multifuel 2 (FM2) facility, which is under construction in the UK.
Renewi will supply 50,000 tonnes a year of RDF to the FM2 facility, which is being constructed by SSE in conjunction with the main EPC contractor Hitachi Zosen Inova. The FM2 facility is due to start commissioning towards the end of 2018 and is scheduled for full operation by summer 2019, when the contract with Renewi begins.
The RDF will primarily be supplied from Renewi’s Wakefield, Barnsley, Doncaster and Rotherham (BDR) and Derby facilities. The close proximity of these sites to FM2 will also provide a CO2 avoidance benefit.
“One of our key recovery initiatives in the Municipal Division is to secure stable long-term outlets for refuse derived fuel (RDF) so we are delighted to have signed this important contract…”
The RDF will be processed at FM2 to generate green energy, making a positive, low carbon contribution to the UK’s electricity supply and helping to reduce the amount of waste sent to landfill.
In total, FM2 will produce around 70 MW of electricity, enough to power around 170,000 homes. The facility is located next to the flagship Ferrybridge Multifuel 1 (FM1) facility.
James Priestley, managing director of Renewi’s Municipal Division said: “One of our key recovery initiatives in the Municipal Division is to secure stable long-term outlets for refuse derived fuel (RDF) so we are delighted to have signed this important contract.
“It provides a long-term off-take outlet for a number of our PFI contracts, which were previously exposed to market volatility. We look forward to the completion of FM2 and to supplying our high-quality fuel to generate green energy.”
Renewi has also recently secured a one year contract to supply the AEB energy-from-waste facility in Amsterdam with 32,000 tonnes of RDF.
The facility supplies electricity and heat to both commercial and residential properties in Amsterdam.
The news comes as Renewi reported a trading loss for it Municipal Division in its annual report.