A deal to develop a plant was originally agreed between Bradford and a partnership between Waddington Recycling and Yorwaste in July 2008, however, the council told letsrecycle.com today (July 14) that “changes in the recycling and financial markets” meant that it would not now proceed.
Having taken into account the changes in the recycling and financial markets and associated commercial issues the executive decided that it was unable to take the contract through to final contract award
Ian Bairstow, Bradford metropolitan borough council
The local authority said it would be looking at alternative options to dispose of residual waste, such as purchasing landfill allowances, before other facilities came on line to treat its waste under its joint PFI contract with Calderdale council in 2015.
Ian Bairstow, strategic director for environment and neighbourhoods, said: “The council has reviewed its position in relation to the interim waste contract which was tendered under the European Procurement Regulations.”
“Having taken into account the changes in the recycling and financial markets and associated commercial issues the executive decided that it was unable to take the contract through to final contract award,” he added.
Intent
Bradford signed a letter of intent with Yorkshire waste companies Waddington Recycling and Yorwaste 18 months ago, in a move which would have seen Bradford become the first UK council to adopt the technology (see letsrecycle.com story).
The council would have sent 70,000 tonnes-a-year of mixed household waste to the facility, which would have treated the waste using steam at high temperatures, resulting in biodegradable matter being stabilised as a fibrous material and recyclable materials, such as glass and metal, being reclaimed.
Speaking to letsrecycle.com today, Mark Waddington, managing director of Waddington Recycling, explained that the deal had faltered after the council insisted on material reclaimed from the process was sold to the recovered material markets regardless of market conditions and that Waddington's had wanted to amend a section of the contract to give it more flexibility if the recyclables market collapsed and help it secure financial backing.
Mr Waddington said: “The council wanted ‘absolute recycling' and so the banks wouldn't accept that [alteration], the banks would want some sort of clause which would allow them to see that it was going into recycling at whatever cost.”
He said the company still intended to develop the plant as a merchant facility but that the project had now been delayed by around 18 months. Mr Waddington said the project may now also be developed on smaller scale and that he had assessed one or two sites around the Bradford area.
LATS
In a report to Bradford council's environment and waste management improvement committee today (July 14), the council claimed that it would be “more cost effective” for Bradford to buy allowances under the Landfill Allowance Trading Scheme (LATS) between now and March 2012 to cover the shortfall created by terminating the autoclave deal.
The council explained that councils in West Yorkshire had agreed to cooperate and pool available allowances for Bradford and that there would be sufficient allowances available to fully meet the landfill diversion target for 2009/10, with some available for 2010/11 and 2011/12.
Mr Bairstow said: “The council will need to take action prior to the planned start of the long term waste contract in 2015 to divert waste from landfill and in making its decision the executive has asked officers to review the current market capacity in the region with a view to developing a further procurement to secure diversion that will reduce the need for the council having to trade for landfill permits and avoid the risk of landfill fines.”
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