Pennon: Only upside for energy from waste as demand outstrips supply


Viridor owner Pennon Group says demand for energy from waste facilities continues to outstrip supply with the firm looking for potential new sites.

In a market update, however, the company said contractual issues at its new build facility in Glasgow may take a chunk out of profit over the project lifetime, depending on the outcome of litigation with Interserve.

Viridor served a termination notice to Interserve in 2016 after ongoing delays with the Glasgow Recycling & Renewable Energy project. The company says it now expects the final cost of the project to be £95 million over the original £155 million budget.

Meanwhile, final commissioning is underway at Beddington (South London) and commissioning is underway at Dunbar (Scotland). Construction is underway at Avonmouth (Bristol).

Completion of all four plants will take the firm’s EfW generation capacity 276MW, an increase of 55% on current capacity.

Pennon said its water business, South West Water, is well placed to earn operational and customer service incentives under Ofwat’s latest price control regime.

The group will post full year results in May.

Related stories:

Energy from waste fires Pennon profit; 50% increase planned

Interserve counts cost of energy from waste exit

Government confirms subsidy levels for waste power

Green Investment Bank invests £80m in new energy from waste plant

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