(Updates with comment from Mexico City official)
PARIS, May 21 (Reuters) - French waste group Veolia signed a deal with Mexico City worth 886 million euros ($1 billion) to build by 2020 and operate over 30 years a waste incinerator whose heat will be used to move the city’s subway, daily Les Echos reported on Sunday.
The incinerator will produce 965 Gigawatts per hour (GWh) of electricity per year, meeting 100 percent of Mexico City’s needs, it said on its website, quoting Veolia Chief Executive Antoine Frerot.
The site will have a processing capacity of nearly 4,565 tonnes of waste per day - a third of the city’s waste - or almost 1.7 million tonnes a year.
Salomon Chertorivski, the Mexico City government’s economic development minister, said the report was broadly correct and that the plant would be one of the biggest of its kind.
“All the energy it produces will be used to power the (Mexico City subway system),” he told Reuters.
The project would be financed through what the government now spends on waste management and electricity to run the subway, he added. ($1 = 0.8928 euros) (Reporting by Sybille de La Hamaide and Dave Graham; Editing by Sandra Maler and Peter Cooney)