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KWS achieve Financial Close on Edinburgh and Midlothian Councils' Food Waste Treatment Contract

Having been announced Preferred Bidder on the Zero Waste: Edinburgh & Midlothian Food Waste Project in October last year, Kelda Water Services achieved Financial Close with the Partner Councils' on Thursday 28 February 2013. 

KWS are part of a joint venture for the scheme called Alauna Renewable Energy (ARE), a partnership between Kelda Water Services and Scottish Water Horizons (SWH) combining the operational expertise of the Kelda Group with the local knowledge, network and support of SWH. 

ARE has agreed a 20-year deal to Design, Build, Finance and Operate a 30,000 tonne per annum anaerobic digestion plant (pictured), which will recycle source segregated food waste on behalf of the Partner Councils.

Edinburgh AD Facility

The project will enable KWS to work towards achieving our Sustainable Resources Strategic Business Objective (SBO) by offering a local and long-term solution for treating food waste collected by the Councils, and using it to generate green electricity and a natural fertiliser which will be utilised within the local economy. Working in Partnership with Scottish Water, who will use the electricity generated to power their local water treatment operations, also contributes towards our goal for Water Efficient Regions.

Peter Sharpe, Business Development Director for KWS, said: "We are delighted to have been appointed to deliver such an innovative project that will make a significant contribution to the sustainability of the local communities and environment. We've been working hard with the Councils to finalise the contract details and we are pleased that these are now all agreed and we can look forward to helping realise their aspirations."

Chris Banks, Commercial Director for Scottish Water said: "Scottish Water is pleased to be an integral part of this important project. We will use renewable electricity generated from recycling Edinburgh and Midlothian's food waste to help power the provision of our water and drainage services across Scotland. Our existing food waste treatment plant at Cumbernauld will also provide back-up to ensure the Councils have complete continuity of service."

KWS hope to receive planning permission for the Facility in May. Following this, the team will work towards starting the construction phase of the project in February 2014, with a Service Commencement date of 1st January 2016.