_{^{By Chris Sloley}} 

Oxfordshire county council intends to formally sign its 25-year waste disposal contract with waste management firm Viridor this September despite its planning committee having refused planning permission for the incinerator at the heart of the deal.

Oxfordshire has agreed to sign the long-term was contract with Viridor despite the Ardley energy-from-waste incinerator at the heart of the deal being denied planning permission

At an extraordinary meeting of the council cabinet yesterday (July 27), councillors voted unanimously to back recommendations to approve the award of the residual waste contract to Viridor, as the contract was said to offer value-for-money and meet a "clear and strong need" for the council's long-term waste disposal.

In the recommendations made by the director of environment and economy and the assistant chief executive and chief financial officer, the development of a 300,000 tonnes-a-year capacity energy-from-waste incinerator at Ardley at the core of Viridor's plans was deemed "essential" for waste treatment in the region.

The plant is expected to treat between 130,000 and 160,000 tonnes of Oxfordshire's residual waste each year and generate around 24MW of electricity. The remaining capacity is expected to be filled by commercial and industrial waste from Oxfordshire.

The waste management firm was named preferred bidder for the multi-million pound contract in September 2009, with other shortlisted company Waste Recycling Group (WRG) being named as reserve bidder.

Since naming it preferred bidder, the council has been working with Viridor to clarify its planning application for the Ardley plant, which was refused by the council's planning and regulation committee in October 2009 (see letsrecycle.com story).

Viridor subsequently appealed the decision in January 2010, and the proposal was then subjected to a public inquiry earlier this month (see letsrecycle.com story). If planning permission is granted in early 2011, Viridor is hopeful of having the plant operational by May 2014.

Inquiry

Supporting documents for the extraordinary meeting state that Viridor, with regards to the inquiry, "took the necessary steps to prepare and present a robust case" and that there was a "reasonable chance of a successful case" according to the leading counsel instructed by Viridor.

And, the documents also state it is "usual" for contracts to be closed before planning permission for necessary infrastructure is obtained.

However, it did include a provision that it would be liable to compensate Viridor if the planning permission was ultimately unsuccessful. Although, it stressed these costs would be "significant though relatively limited as construction would not have started".

Councillors were informed that the contract offered value-for-money and, if it was not awarded to Viridor, restarting the procurement process could cost £3 million and take three-to-five years to complete. During which time Oxfordshire would face associated costs of landfill, Landfill Tax and Landfill Allowance Trading Scheme penalties.

Welcoming the cabinet's decision, Viridor's managing director Mike Hellings said: "This decision represents a key milestone in the development of this project and we are proud that Oxfordshire's cabinet members recognised that our proposals are essential for the authority to meet its targets and deliver a good and value for money service to its residents."

WRG

In the wake of the county council's decision, reserve bidder WRG announced yesterday that it would be submitting a planning application next month for a mechanical biological (MBT) treatment facility at its Sutton Courtenay landfill site in South Oxfordshire.

The plant would replace the proposal made by WRG in October 2009 for a 220,000 tonnes-a-year capacity energy-from-waste incinerator, which was refused planning permission. The company did not appeal the decision and did not attempt to achieve an operating permit from the Environment Agency.

Outlining the MBT proposal, a spokesman for WRG said: "If Viridor's appeal is unsuccessful, Oxfordshire will urgently need to find another disposal route for its residual waste. An MBT plant at Sutton Courtenay could help meet that need."