Veolia Environmental Services today announced that it has been engaged to construct its first biodiesel* production plant in France. The facility will be located near Paris in the region of Limay (78).

This project forms part of the second phase of a program established by the French government to aide the development of biofuel, and thus, promote the use of renewable energies and assist the fight against the greenhouse gases. This project – which is due to commence in 2008 - is an innovative industrial project based on a strategically located facility.

An innovative industrial project
The project consists of the establishment of a manufacturing plant for the production of resource-recovered biodiesel from used food oils that will be blended with virgin vegetable oils.

The plant will produce 60,000 tons of biodiesel and further underscores Veolia’s know-how and leadership of the resource recovery and renewable energy industries.

A strategic facility
It is envisaged that this new facility will be located near Paris in the harbor zone of Limay Porcheville (78), near VES’ existing resource recovery and treatment facility for hazardous wastes.

The sitting of the facility here will allow for
- water transportation of incoming materials and produced products,
- the development of energy exchange synergies within Veolia due to the facility being located in close proximity to existing VES SARP Industries sites and the direct collection of used food oils from a dedicated subsidiary of VES.

The estimated investment is approximately €€22 million and the long term recruitment of around 20 employees.

A partnership in favor of future renewable energies
Thanks to these new biofuels, Veolia will be able to feed its fleet of waste collection and passenger transport vehicles from 2008.

* Biodiesel is one of the 2 "clean" fuels or biofuel. These fuels are derived from the fermentation of sugar contained in certain plants (bioethanol) or from the transformation vegetable oil (biodiesel).
The French government decided to accelerate the development of the production of the biocarburants by authorizing the construction of 16 new production facilities in order to reach a level of 5.75% usage by 2008.

Veolia now operates its water, waste management, energy services and passenger transportation businesses under a single name. Onyx has become Veolia Environmental Services.

Veolia Environmental Services, the Waste Management business of Veolia, is the only operator covering all segments of the waste market (solid, liquid, non-hazardous industrial and hazardous waste) across the 5 continents. Veolia Environmental Services provides logistics, industrial cleaning & maintenance services (e.g. waste collection, sewer, street cleaning and waste flow management services) and processes or treats waste to extract value.
In 2005, Veolia Environmental Services’ sales amounted to 6.6 billion euros.

Veolia (Paris Euronext: VIE and NYSE: VE) is world leader in environmental services. With more than 270,000 employees the company has operations all around the world and provides tailored solutions to meet the needs of industrial and municipal customers in four complementary segments: water, waste management and environmental services, energy services and passenger transportation.
Veolia recorded revenue of €€25.2 billion in 2005.

Analyst and institutional investor contact: Nathalie Pinon - Tel. +33 1 71 75 01 67