Defra bag tax announcement paves way for new recovery plant

New Earth Solutions operates an 18,000 tonne per annum plant in Poole, Dorset, which takes in residual waste from households in the county.

” Now that the minister has made the governments position clear we are pursuing the procurement of a diesel fuel production plant jointly with Cynar “
– Peter Mills, New Earth Solutions
The company had been investigating the possibility of expanding its facility to 50,000 tonnes and selling the collected fine plastics, about 5,000 tonnes, to Australian company Cynar to be turned into diesel fuel.

New Earth Solutions plan is for Cynar to build its first UK plant next door to New Earth's plant, allowing the collected material to be easily passed between the two companies.

The company had been concerned that if the government was to introduce a carrier bag tax, there would not be sufficient materials to fill the plant. Their fears were alleviated earlier this month Mr Bradshaw said that at present a carrier bag tax would not be followed up until more conclusive evidence was available.

Peter Mills, sales and contracts director for New Earth Solutions, said: “A carrier bag tax and the resultant reduction in bags in use – as in the Irish Republic – could have had an adverse impact on our plans to build a plant for the production of diesel fuels from those fractions of plastics that can not be recycled.

“Now that the minister has made the governments position clear we are pursuing the procurement of a diesel fuel production plant jointly with Cynar,” he added.

The Poole plant separates out rigid plastics, metals and other recyclables – leaving only the organic matter and fine plastics – mostly made up of plastic bags. This is then left to dry and the plastic is removed. Mr Mills said: “It is much easier to remove the fine plastics from a dry organic material than when it is wet.”

The recyclable material that is taken from the facility at the front end is sold on to reprocessors. Mr Mills said that the company would be selling these at the best market price at the time rather than setting up long term contracts.

New Earth Solutions intention is that Cynar will then be build a plant next door to New Earth Solution's facility. This plant will have the capacity to turn 5,000 tonnes of fine plastic into diesel fuel per annum. Mr Mills told letsrecycle.com that the plant would be capable of producing between five and six million tonnes of diesel fuel per year.

New Earth has already begun working on the 4.5 million extension to its own facility, this should be completed by March next year in time to begin taking deliveries from April. Plastic will be stock piled in preparation of Cynar bringing their technology to the site, which is intended to be ready by September 2006.