The city of Poznań, the 5th largest in Poland produces about 250,000 tons of municipal solid waste per year. Although recycling strongly develops among residents and businesses, a substantial part of the waste ended up in landfills until the City decided to find a long-term, reliable solution and use the potential of residual waste as a source of energy.
The new facility should be designed to produce power and heat delivered to the City’s district heating network, thus reducing the dependency on coal as a source of energy.
Energy from waste: a new resource
The Energy-from-Waste facility processes non-recyclable waste collected in the City of Poznan and several neighboring communities. By using a high-efficiency turbine and a connection to the district heating network, the plant can deliver both power (up to 18 MW) and heat (up to 34 MW) depending on the demand of the district heating network.
A Public-Private Partnership combined with EU cohesion funds to optimise the project funding
The City of Poznań decided to undertake the project in the form of a public-private partnership, where the private partner shall ensure the financing, construction and long-term operation of the facility in exchange for a remuneration subject to the plant’s performance. Under this model, the City could spare its borrowing capacity while keeping a close control on the delivery of the services and plainly tapping into the efficiency of the private sector. The €170 million PPP project was also structured to benefit from EU cohesion funds in the form of an €82 million investment subsidy, thus reducing the final cost for the end-users. In December 2012, following a one-year competitive dialogue, the City of Poznan awarded the project and signed a 25-year design, build, finance and operation contract with SUEZ Zielona Energia, a joint venture of SUEZ Poland and the 2020 European Fund for Energy, Climate Change and Infrastructure – the “Marguerite” investment fund.
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