Veolia to Build and Operate Waste-to-Energy Facility in Mexico City

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 twice that of the largest facility 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 $1.1 billlion 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, Plancha Zocalo, to a depth of one meter. At present, two-thirds of this waste is landfilled.

This new waste-to-energy facility will provide an 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 Metro.

“Today, waste can become a valuable resource,” Gustavo Migues, executive vice president Latin America at Veolia said in a statement. “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.”

The plant’s construction is due to begin in 2017 and will last 3 years. Operations are scheduled to start in 2020.