Estech Europe has been through a number of planning difficulties over the past two years (see letsrecycle.com story), but actually saw planning permission granted for two plants at Hartlebury in Worcestershire and at Madley in Herefordshire by the end of 2006.
”The company continues to seek clarification as to the reasons behind the decision, given the councils' publicly stated adoption of autoclave waste processing technology “
– ReEnergy Group plc statement
But both Herefordshire and Worcestershire councils confirmed today that discussions to supply the plants with waste have been halted.
Worcestershire council – taking the lead on the joint waste contract with Herefordshire contract – refused to reveal details about the decision to cancel discussions over the contract.
It is understood that early contract discussions had involved the need to vary the existing PFI-backed waste contract with Mercia Waste Management via a sub-contract with Estech Europe, providers of the autoclave plants. Autoclave technology sees mixed municipal waste treated using high temperature steam, allowing recyclable metals, plastics and glass to be removed.
ReEnergy
ReEnergy Group plc – the parent group of Estech Europe, which hopes to build the autoclave treatment plant – told its investors on the London Stock Exchange just before Christmas that it was seeking clarification over the councils' decision.
In a statement, it said: “The Board of ReEnergy Group plc, the waste management, sustainable energy and water treatment company, announces that the discussions with Hereford and Worcester councils designed to reach final conclusion to negotiations for a waste supply contract for the processing of up to 344,000 tonnes of municipal waste per annum have been called to a halt by the councils.
“The councils have indicated that they do not wish to continue the discussions.
“The company continues to seek clarification from the councils and Mercia Waste Management Ltd, as primary contractor, as to the reasons behind the decision, given the councils' publicly stated adoption of autoclave waste processing technology,” the company explained, adding that a further announcement would be made “in due course”.
Councils
Calls to both Herefordshire and Worcestershire councils were all responded to with a “no comment”, with a spokesman for the lead council Worcestershire only willing to comment on the statement made by ReEnergy Group to its investors that: “The statement put out by the company is true”.
The contract was one of the first municipal waste contracts to receive support from the Private Finance Initiative – back in 1998/99 some 57 million in PFI credits were provided by the government to support the new infrastructure needed.
In the eight years since the contract was signed, recycling rates in Worcestershire have risen to 31.5% and in Herefordshire to 24%, but time is running out to reach looming landfill diversion targets.
Defra
Curiously, Defra today denied ever making the announcement it made back in 2005, that Herefordshire & Worcestershire was being threatened with the removal of its PFI credits over the delays in establishing new treatment plants (see letsrecycle.com story).
The Department's spokeswoman said the details given to letsrecycle.com in December 2005 by its press team were “inaccurate” and that only Surrey county council had ever been threatened with the removal of PFI credits.
As far as Defra was concerned, both the Herefordshire and Worcestershire and the Surrey PFI contracts were now making “very good progress”, the spokeswoman added.
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