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Cheshire awarded 40 million in PFI credits

Defra announced today that Cheshire county council is to receive 40 million in PFI credits to help divert municipal waste from landfill.

The support from the Private Finance Initiative will see a private sector company – or companies – working with the county and its districts through a 25-year waste management contract.


” Cheshire's scheme is ambitious with targets well above requirement. “
– Ben Bradshaw

Cheshire recycled just under 30% of its household waste in 2005/06, but under the PFI contract it is aiming to increase this rate to 54% by 2020.

A target has been set by the county to reduce landfill rates from 74% of household waste to just 17% by 2020. The search for a waste contractor is expected to begin this autumn, with the contract to be signed late in 2008 or early 2009.

Minister
Announcing the funding support today, local environment minister Ben Bradshaw said: “Cheshire's scheme is ambitious with targets well above requirement, and I am pleased to see such a commitment to helping us reduce our out-dated reliance on landfill.”

“The county's plans not only offer households and businesses what they need to be even greener and sustainable when it comes to what they throw away, but they take into account the long-term needs of local communities,” Mr Bradshaw said.

Plans for the PFI contract include more composting facilities, household waste recycling centres and some form of residual waste treatment for material not recycled through conventional means.

MBT
Cheshire has said its preferred option for this residual component of waste is for some form of mechanical biological treatment to be used. This would see a combination of physical separation techniques and composting or digestion used to process mixed black bag waste.

John Thistlewood, management services contract procurement manager, told letsrecycle.com: “We have not been over prescriptive, if somebody comes up with another bankable idea we will look at it.”

Cheshire is already investigating potential markets for refuse-derived fuel (RDF) that might be produced as a residue of the MBT process. Mr Thistlewood explained: “There are potential outlets, there are no firm outlets. We are exploring a number of opportunities. Our preference would be to have a third party that could use the RDF.”

Landfill and recycling
Separate to the PFI contract, Cheshire will also be seeking new contracts for landfill provision and for operating and improving county household waste recycling centres – both contracts are up for renewal in early 2008.

Mr Thistlewood revealed that the county may also consider building in-vessel composting facilities if its districts decide to launch food waste collection schemes. He said this was something the Cheshire Waste Partnership was “looking at seriously”.

Related links:

Cheshire county council

Defra: Waste PFI

Cheshire county council sent 215,000 tonnes of biodegradable municipal waste to landfill in 2005/06 – well under the 240,469 tonnes of landfill allowed for the year under Defra's Landfill Allowance Trading Scheme.

Mr Thistlewood said he believed the county would be safe from any potential government fines under the LATS scheme until about 2009/10.

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