Waste Recycling Group (WRG) has been producing environmental reports since 1999 but this is the first report to encompass the whole of the FCC UK Group. The FCC UK Group is made up of WRG with its 48 subsidiary undertakings and Focsa Services (UK) Ltd with its 5 subsidiary undertakings. The ultimate parent company of the UK Group is Fomento de Construcciones y Contratas, S.A (FCC), a significant international business listed on the Spanish SIBE stock exchange, with operations in Europe, South and Central America, Africa, the Middle East and the United States of America. FCC’s principal activities cover Environmental Services (including waste management), Non-Environmental Services, Renewable Energy, Construction, Cement and Real Estate.

 

2010 was another very challenging year for the whole of the waste industry, with a continuation of the difficult market conditions seen in recent years. The European Landfill Directive, requiring Local Authorities to develop new strategies to reduce the amount of biodegradable municipal waste sent to landfill by 65% in 2020, together with the annual increase in Landfill Tax from £48 per tonne in 2010 to £80 per tonne in 2014, is having and will continue to have a major impact on both the municipal and commercial and industrial sectors within a waste industry that has historically been heavily reliant on landfill. The UK Group however is adapting and seeking prospects for growth within this highly competitive and rapidly changing environment.

 

2010 was a progressive year for the Group, it was the first full year under the leadership and stewardship of the new CEO. There was also the announcement, in the media of the Group’s new strategic direction to a business model that recognises material values and produces renewable energy, moving away from the historical reliance on landfill.

 

The highly successful 25 year RE3 Waste Partnership has been operating since 2006 and is recognised as a pioneering PFI scheme. The provision of waste collection facilities, including household waste recycling centres (HWRCs) and bring banks together with the services for the collection and disposal of municipal waste is provided by the UK Group in partnership with Reading, Bracknell Forest and Wokingham Borough Councils.

 

The Group also provides waste disposal, treatment and management services for the 25 year PFI contract with Wrexham County Council. This project, the first PFI for waste management in Wales was awarded Excellence in Wales status during 2010, emerging as winner of the category “Our services – delivering high quality, citizen-centred services”.

 

FCC in the UK aims to become the partner of choice for its existing and future Local Authority, industrial and commercial customers. The Group’s objective is to achieve sustainable business growth through the retention of existing customers and to seek out and win new business offering complimentary treatment technologies. The Group is an active participant in the PFI and PPP market and was delighted to be awarded Preferred Bidder status for a waste partnership with Lincolnshire County Council at the end of 2010 and financial close early 2011. In partnership with Lincolnshire Waste Partnership the Group will design, build and operate a 150,000 tonne Energy from Waste (EfW) facility on land at North Hykeham in Lincolnshire to deal with the county’s non-recyclable waste and to generate electricity.

 

In early 2010, FCC in the UK announced its intention to invest £100million in building wind energy developments on suitable closed and operational landfill sites from its portfolio of over 100 sites in England, Scotland and Wales. This exiting development will hugely increase the electricity generating capacity of the UK Group which already recovers energy from the clean combustion of non-hazardous household, commercial and industrial wastes at its EfW incineration facilities.

 

The UK Group’s partnership with CEMEX UK to supply fuel derived from waste is enabling us to offer a treatment solution for residual waste utilising Mechanical Biological Treatment (MBT) technology which does not entail the use of an EfW plant.

 

In December 2010, FCC in the UK entered into a formal partnership with EnergySolutions Limited, a specialist nuclear services company, to tender for opportunities to dispose of very low level radioactive waste arising from the UK’s nuclear decommissioning programme.