Veolia, through its subsidiary Proactiva Medio Ambiente Mexico, has secured a contract to construct and operate what it describes as the first waste-to-energy facility in Latin America.
The company won the public call for tenders published by the government of Mexico City to build the facility.
With a capacity twice that of the largest facility in France, the plant will treat around 1.6 million tonnes of household waste per year.
The 30 year operation and maintenance contract of the facility will represent an estimated cumulative revenue of €886m for Veolia.
Veolia said that it will take support from global as well as Mexican companies to build the facility.
The French company estimates that Mexico City generates about 13,000 metric tons of waste per day and if left untreated, the waste can cover the city’s central square Plancha Zocalo, to a depth of one metre. Presently, about two-thirds of this waste goes into landfills.
The facility will provide an efficient alternative for treating the waste from this city of 10 million people. Each day, it will convert about one-third of the city’s household waste into green energy.
It will generate 965,000 MWh of electricity each year, which will be used directly by the Mexico City Subway Metro.
Construction of the plant is expected to begin in 2017 and will last for about 3 years. Operations at the facility will begin in 2020.
Vesolia Latin America Executive Vice President Gustavo Migues said: “Today, waste can become a valuable resource. In this instance, Mexico City will favor the treatment of waste and the production of renewable energy.
“We are delighted to have been selected for this truly significant project, through which we will contribute to improving the quality of life of the citizens of Mexico City and their essential services, while also helping fight climate change.”
"What we are going to do in Mexico City is the demonstration that our expertise in waste management – one of Veolia's core business – has a bright future ahead of it. The needs in Mexico, and more widely in Latin America, are such that we have a huge potential for development."
Image: Veolia wins contract to construct waste to energy facility in Mexico. Photo: Courtesy of Veolia.