Cornwall EfW contract outdated

Cornwall council could save up to 320 million if it scraps plans to build an energy from waste incinerator and instead increases recycling rates, according to a report produced for opponents of the plant.

The report, was commissioned by the Cornwall Waste Forum (CWF) which opposes the building of the 117 million Cornwall Energy Recovery Centre near St Dennis, Cornwall, set to be built by waste management firm SITA UK. The forum commissioned waste consultancy Eunomia to produce the report.

The plant is being developed under a 30-year waste PFI contract between SITA UK and Cornwall council, signed in 2006 (see letsrecycle.com story). The council had considered scrapping the contract, but it estimated that the cost of pursuing an alternative option could have been in excess of 200 million.

Cornwall council and SITA have been fighting a long running legal battle with local residents over the development of the 240,000 tonne capacity plant. The dispute appeared to have ended in July when the Supreme Court turned down its application for leave to appeal against a judgement by The Court of Appeal, upholding planning permission for the facility.

The consultancy found that the PFI contract represented poor value for money for the local authority. CWF is now calling for the council to review the deal, based on the findings of the report.

Costs

Eunomia estimates that over the life of the contract, the council will incur costs of around 657 million (28 million per year).And, it claims that the council could reduce its costs by an average of 10 million per year, if recyclable materials are diverted out of the PFI contract and on to the open market.

Additionally, the report claims that were the plans to build the incinerator dropped altogether, the council would make savings of more than 20 million per year on waste management.

The contract is also described by Eunomia as outdated and not fit for purpose, as, it claims, it is based on analysis conducted in the late 1990s which no longer reflects the legislative and technology context of waste management.

Commenting on the findings, Cornwall Waste Forum, St Dennis Branch chairman Ken Rickard, said: We began our campaign because of our concerns about the impact on the environment and health of Cornwall, and our immediate community if an incinerator was built in St Dennis. Over time we have found out more about the complex subject of waste management and become convinced that Cornwall council boxed themselves into a corner when negotiating the PFI contract with SITA.

This has not offered value for money, or taken into consideration the huge changes taking place in waste disposal approaches elsewhere in the country. Councillors have understandably asked for evidence, which we have now provided and it is their responsibility to look into this contract and question waste treatment and disposal policy.

Response

In response to the claims made in the report, a spokesperson for Cornwall council, said that alternative technologies had been examined throughout the public examination process.

The spokesman added: Adopting a different approach would require the Council to change its existing waste policy and develop a new policy. Not only would this mean carrying out further public consultation, the authority would also need to find alternative sites, procure a new contractor, enter into a new contract and obtain planning permissions.

As reports from both the Secretary of State and the independent Planning Inspector have previously confirmed this process could take eight or nine years to implement resulting in further costs of between 80 and 90 million in landfill tax alone. It would also require the authority to investigate all solutions and all technologies rather than simply focus on anaerobic digestion to form a new waste strategy and could, therefore, come to the same conclusion.

• Also in Cornwall, Energy from Waste firm GreenEfW Investments has received planning permission to build a 70,000 tonne per annum facility to treat commercial and industrial waste. The merchant facility will treat material using torrefaction and flash pyrolysis technology. Construction of the facility near Scorrier is set to be completed in April 2014.