French environmental solutions provider Veolia, through its subsidiary Proactiva Medio Ambiente Mexico S.A. de C.V., has won the public call for tenders published by the government of Mexico City and just signed the contract to design, build, and operate the first waste to energy facility in Latin America.
With a capacity that doubles the largest facility of its kind in France, this unit will treat around 1.6 million metric tons of household waste a year. The 30-year operation and maintenance contract of this facility will represent an estimated cumulative revenue of US$ 995 million for Veolia.
Jointly with leading global and Mexican companies, Veolia will build and operate the first waste to energy plant in Latin America. Each day the inhabitants of Mexico City generate 13,000 metric tons of waste. Untreated, this waste would cover the city’s central square to a depth of one meter. At present, two-thirds of this waste is landfilled.
This new waste to energy 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. The 965,000 MWh of electricity produced each year by the plant will be used directly by the Mexico City Subway Transportation System.
“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,” said Gustavo Migues, Executive Vice President Latin America at Vesolia, at the contract signing ceremony.
"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," Migues added.
The plant’s construction is due to begin in the coming months and will last 3 years. Operations are scheduled to start in 2020.
Active for 25 years in Mexico, Veolia serves 13 million people in the country and employs 3,000. The company treats 2.3 million metric tons of waste a year and provides 800,000 people with a waste collection service. With 500 million cubic meters of drinking water produced annually, Veolia Mexico meets the needs of the residents of 20 Mexican cities.