LWARB launches 19m tailored waste fund

LWARB said the fund represented a new approach to funding waste projects in the a difficult economic climate and will see it work with project sponsors and potential funders to provide tailored support to projects that are proving hard to get off the ground.

As such, the plan notes that project sponsors will need to demonstrate that they have explored other avenues of funding before applying to LWARB. Projects that LWARB can support must also operate in accordance with the London Mayors Municipal Waste Management Strategy.

According to the Board, the fund will enable it to try and tackle the waste capacity gap in the capital, which for 2015 is estimated to total more than 4 million tonnes.

However, the fund does not represent additional money newly granted for possible infrastructure projects, but comes from the Boards existing funding from Defra.

The plan also highlights that, in the long term. LWARB will not be able to meet the capacity gap requirements of Londons waste infrastructure given the value of its available funds.

Instead, it sets out long-term commitments to develop a London-wide plan for waste infrastructure requirements through to 2031; reaching a position whereby LWARB does not rely on taxpayer-funded grants; and, roll out LWARBs business model to other major cities in the UK.

Projects

According to the plan, LWARB is seeking interest from developers of infrastructure projects to treat Londons waste, but is prioritising projects that: are based outside East London; meet requirements of the strategic capacity gap; and are close to delivery but require LWARB support to close the project.

Technologies outlined in the plan for support from LWARB include composting/anaerobic digestion (AD) facilities; combined heat and power projects; infrastructure for manufacturing of recyclate into new materials; and projects that offset fossil transport fuel such a biodiesel from used cooking oil.

In 2010, LWARB provided financing to the organics recycler TEG Group to develop Londons first AD plant, which is now under construction and due to open later in 2013 in Dagenham (see letsrecycle.com story).

The plan also outlines LWARBs intention to continue working alongside the independent London Green Fund managed by the European Investment Bank, to which LWARB has so far contributed 18 million.

Waste Efficiencies Programme

The business plan launched today also provides details of the Waste Efficiencies Programme, which is aimed at helping London waste authorities save money without the need to cut front line services.

Originally launched in March 2012 (see letsrecycle.com story), the Programme will provide ongoing support for London boroughs to communicate reuse and recycling information to residents.

In January 2013, an Efficiencies Committee was established to oversee delivery, liaise more closely with boroughs and to help raise the profile of the Programme. The committee will be announcing details of a further 1.7 million of assistance to London authorities in the summer.

Richard Tracey, Chairman of LWARB said, Access to finance is a critical barrier to infrastructure delivery in London. For this reason, this plan outlines a flexible approach to infrastructure financing. Investment in new waste infrastructure to move the treatment of waste away from landfill has substantial benefits for London and the UK. Waste infrastructure investments create jobs for Londoners, and the businesses created continue to invest in the local economy for the lifetime of the plant.

According to LWARB, over the past two years it has committed almost 51 million to various projects to improve waste management in the capital.

LWARB is currently in talks with Defra after it emerged that the Board will not be receiving additional 2 million funding for the 2013/14 financial year, which it has received for the past two financial years (see letsrecycle.com story).

LWARB, funded by Defra, was set up in 2008 to bring together all of London’s waste stakeholders to transform the management of waste in the capital. It is required to publish a business plan each year. The 2013-2015 business plan is available on the LWARb website.