Pennon's Viridor arm sheds contractor as Glasgow project falls behind schedule

Pennon’s waste management arm Viridor is reported to have served a notice of termination to contractor Interserve which has been working on Viridor’s Glasgow energy recycling facility project.

The project has fallen behind schedule and should currently be in commissioning. Full operation was scheduled to start in the second half of 2016/17. Viridor said in September that the project was “on track”. It reported then that it was in receipt of contractual compensation [from Interserve] for delays against original expectations."

The technology involves gasification of the waste and Interserve claimed in May that matters of ”design, procurement and installation of the gasification plant" were causing delays. It said said it had put aside £70m to deal with project delays. A firm involved in the regasification element, Energos, went into administration in mid-May.