Shanks, SSE JV Closes GBP750 Million BDR PFI Pact

Shanks Group PLC SKS.LN), a European waste management business, said Monday its majority owned joint venture with SSE PLC (SSE.LN), 3SE (Barnsley, Doncaster & Rotherham) Ltd., has signed a 25 year contract worth over GBP750 million with Barnsley, Doncaster and Rotherham, or BDR, Councils for the treatment of black bag waste.

MAIN FACTS:

-Subject to planning permission being granted, Shanks will build a Mechanical Biological Treatment, or MBT, and Anaerobic Digestion, or AD, facility at Bolton Road, Manvers by 2015.

-Plant will process municipal solid and organic waste into recycled products, solid recovered fuel, or SRF, and biogas for energy generation, and digestate for compost and fertilizer.

-Shanks will operate the facility over the 25-year period of the contract until 2040.

-Under the agreement, SSE will use around half of the SRF produced at a new multi-fuel plant at Ferrybridge to generate electricity.

-When facility at Bolton Road is operational it will lead to a saving equivalent to 114,000 tons of CO(2) every year.

-Shanks shares closed Friday at 98.75 pence valuing the company at GBP391.91 million; SSE shares closed at 1329 pence valuing the company at GBP12.56 billion.

-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; [e-mail]