FCC has secured finance to start construction of a £142m energy-from-waste facility near Edinburgh.

Above: CGI of Millerhill energy-from-waste plant

UK Green Investment Bank (GIB) has committed £28m of debt finance to the new plant at Millerhill in Midlothian, joining a lending club that includes Investec, Siemens Bank and Credit Agricole.

The 14.1 MW facility is expected to treat up to 155,000 tonnes of waste every year once complete. The waste, sourced mainly from local residences, will be pre-screened in a mechanical treatment facility to remove recyclable material before entering the energy recovery process.

The plant is forecast to generate approximately 94,000 MWh of electricity a year. The plant will also be combined heat and power (CHP)-ready, meaning it has the potential to supply excess heat from its operations to nearby homes and businesses.

Spanish-owned FCC Environment (UK) has been appointed to design, build and operate the plant by Zero Waste: Edinburgh and Midlothian, a joint venture between City of Edinburgh Council and Midlothian Council. FCC already operates similar facilities in four locations in the UK.

EPC contractor is Hitachi Zosen Inova. Construction is due for completion in 2019.

Cllr Lesley Hinds, environment convenor for City of Edinburgh Council, said: “I am pleased that FCC will now be able to begin work on this state-of-the-art facility. In Edinburgh we have made great progress to increase the amount of waste we recycle and this new facility will provide a sustainable way of disposing of any waste that can’t be recycled by using it as an energy source for locally-generated heat and power. The procurement of this project is an example of successful partnership working between the two councils, and will benefit both Edinburgh and Midlothian’s zero waste strategies over the coming years.”

The Millerhill project is GIB’s 18th investment in Scotland. The bank has previously backed the construction of the £74m Craigellachie combined heat and power plant in Speyside and financed the replacement of 70,000 streetlights in Glasgow through a Green Loan.