Developed by Iona Capital and JFS & Associates, the Leeming Biogas facility was praised by Lord Bob Kerslake, former head of the civil service and now president of the Local Government Association.
He described the AD plant as “a great example of the way things are happening, both in terms of pension funds and in tackling waste and generating energy”.
And, Lord Kerslake told the audience of guests and project staff about the ‘new role’ of local authority pension funds in supporting infrastructure projects within the UK with funds coming together.
Infrastructure
“There is a big change in the role of local authority pension funds, it is now about business nationally,” he said. “Over time we will have about £23 billion in London under management to look at infrastructure in the UK. It could be roads and other projects but it could be on schemes like this. I think we should see a little more with this in the years to come and at least part of the funds will go to infrastructure development.”
With the Leeming Biogas plant to be operated by Veolia, Lord Kerslake, recalled his time in Sheffield and the need to replace the city’s incinerator with a contract let to Onyx, which then became Veolia, developing a new energy from waste facility. He added: “The really interesting question for me was how much further we could take alternative forms of waste disposal. And AD now offers a viable choice for local authorities of what they can do with their waste or businesses as we have here.”
These comments on infrastructure investments were endorsed by Sir Merrick Cockell, chairman of the London Pensions Fund Authority which has responsibility for £4.6 billion of Greater London Authority pension monies.
Building Britain
Guests at the opening ceremony were told by Sir Merrick that the local authority pension sector “is trying to encourage “the right sort of investment into housing and things like that. This has been led by Merseyside and Strathclyde and it really is a case of building Britain.”
And, Sir Merrick also highlighted the GLIL – (Greater Manchester Pension Fund & LPFA Infrastructure) – joint venture between London and Manchester, “which has been established to increase our exposure to infrastructure to match long-term liabilities and have social returns so that our members are winning in both respects. Each party has allocated quarter of a billion.”
The pensions’ chairman also highlighted the work of Iona Capital in helping to develop the Leeming facility. “Specialist knowledge such as Iona is very important although we have to grow our own specialist knowledge.”
Mike Dunn of Iona Capital thanked the pension funds for their support and being “committed to investing in environmental infrastructure projects that help our environment and create jobs. The plant has helped local businesses cut costs and boost their environmental credential by partnering with us.”
Ice cream
The plant is, in effect, an AD plant for liquid waste although it does have a macerator. With a maximum capacity of 80,000 tonnes per year, the largest waste supplier is R & R Ice Creams of nearby Leeming Bar which will supply 30,000 tonnes of ice cream byproduct for processing. Other wastes will come from AB Agri (Associated British Agriculture) and other commercial sources. At present digestate is given away free, but Mike Dunn of Iona Capital said he hoped eventually that farmers would regards the product as a useful fertiliser and they would pay for it.
Equipment for the plant includes tanks from Anaergia, carbon filters from Carborex and a CHP unit from Germany’s 2G Energy AG. CNG Services provided the gas network entry equipment
Local authority pension fund investors in the project are Tameside, Merseyside , Strathclyde and London Pension Fund
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