The 169 million government grant would have funded Norfolk county councils Willows waste treatment contract, signed with consortium Cory Wheelabrator in February 2012, over a 25-year period (see letsrecycle.com story).
The Cory Wheelabrator said it was “disappointed” but would now be submitting a revised project plan to the county council in line with its contract.
The announcement comes just days before the council is due to debate the future of the contract at a meeting on October 28.
Today, alongside the Norfolk decision, Defra published an update of its waste arisings and treatment forecasting.
Council leader George Nobbs, who was informed this morning the grant was to be axed, has expressed his disappointment with the governments decision.
He said: Todays announcement clearly adds a new dimension to the debate about waste disposal in Norfolk.
I have instructed officers to report back in time for the Full Council meeting, which I am glad is taking place, so that we have an informed debate around all the issues. I have always recognised that people on all sides of this debate have sincerely held views that need to be aired as part of this process.
Nonetheless, the Council is still bound by the contract entered into by the previous administration. Make no mistake, whichever way you choose to look at it, this is more bad news from this government for Norfolk taxpayers.
Development of the Kings Lynn EfW facility has been met with considerable local opposition since first proposed, and a public inquiry was launched earlier this year over the councils decision to award planning permission for the plant (see letsrecycle.com story).
Costs
Cllr Nobbs has now instructed officers to prepare reports on the financial consequences for the local authority.
In June, a report found the council could face costs of more than 30 million or significantly more if it decided to cancel the contract with Cory Wheelabrator (see letsrecycle.com story).
Defending the decision, a spokeswoman for Defra said: We are investing over 3.5 billion in waste infrastructure projects to reduce the amount of waste sent to landfill, promote recycling and stimulate economic growth.
The amount of waste sent to landfill is at its lowest level while recycling rates have been increasing year on year and are now the highest on record.
Given that we expect to have sufficient infrastructure in England to enable us to meet the EU target of reducing waste sent to landfill and considering all other relevant factors, the decision has been taken not to fund the Norfolk project.
Paul Green from Cory Wheelabrator commented: We are disappointed that the waste infrastructure credits have been withdrawn from the Norfolk project. The consortium will submit a revised project plan to Norfolk County Council in line with its contract.
The decision to pull government funding follows the publication of a Eunomia report earlier this month, which found that shipping Norfolks waste to incinerators in the Netherlands could be up to 34 per tonne cheaper than through the 25-year incinerator contract (see letsrecycle.com).
It comes after several withdrawals of Defra PFI funding for waste infrastructure projects this year, such as those in Bradford, Merseyside and Yorkshire (see letsrecycle.com story).
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