Thalia walks away from Island waste contract

The incineration plant in 2024

Thalia Waste Management has confirmed it is pulling out of its £225 million‑pound 25-year deal with the Isle of Wight Council, ending a troubled partnership, blighted by failed technology, corporate reshuffles and years of delay at the Forest Road Waste Recovery Park.

The Council is now urgently seeking a new contractor to handle waste collection and processing from April 2026. Council officers insist household services will continue without interruption, but the departure shines a spotlight on long‑running problems.

The contract was first awarded in 2015 to Amey, with the promise of a cutting‑edge gasification plant to turn rubbish into energy. That plan collapsed when subcontractor Energos went into administration in 2016, forcing a costly switch to conventional incineration.

In 2022, Amey’s parent company Ferrovial sold off the Amey brand but kept the waste division, rebranding it as Thalia. Some critics saw this as the beginning of an exit strategy. While trucks were repainted, the Forest Road plant remained beset by delays, only receiving its final approval certificate in January 2025 – six years late.

Thalia’s decision to leave just as the plant is finally operational may seem surprising, but industry observers say it makes business sense. By handing over a working facility rather than a half‑built project, the company can walk away more cleanly, avoiding future maintenance costs and potentially reducing exit penaties.

Under TUPE rules, Thalia’s staff are expected to transfer to whichever new provider is appointed. For the Council, the challenge now is to find a partner willing to take on a serve with a chequered past and the Island’s waste strategy for the future.