RRS, the developer of the failed Sinfin gasification plant, was a partnership between infrastructure firm Interserve and waste management company Renewi.
The company signed a 27-year, £900 million waste treatment contract with the councils in 2009 which reached financial close in 2014 (see letsrecycle.com story).
The deal included managing Derby’s household waste recycling centres (HWRCs), providing five transfer stations and building and running a 190,000-tonne capacity energy from waste (EfW) plant in Sinfin, Derby.
However, the councils brought an early end to the contract in August 2019 after problems with the plant, which included excessive odours (see letsrecycle.com story).
RRS is now in administration, with Ian Wormleighton of public relations and advisory company Teneo listed on Companies House as the administrator.
In a statement, a spokesperson for Derbyshire county council told letsrecycle.com: “Resource Recovery Solutions (Derbyshire) Ltd (in administration) has commenced formal court proceedings against Derbyshire county council and Derby city council, following termination, in August 2019, of the project agreement for the joint waste project, including the waste treatment centre in Derby.”
The spokesperson said the councils would defend the proceedings but were unable to comment further as they were now in a formal litigation process.
Letsrecycle.com contacted Teneo for further information and comment.
Sinfin
Following the end of the contract, the Sinfin plant stopped accepting waste, which the councils sent instead to EfW plants, refuse derived fuel facilities and landfills in the UK.
Renewi UK Services was then appointed to carry out a deep clean and undertake a series of condition surveys on the state of the facility to inform an appraisal into its future viability.
The councils also gave Renewi a two-year ‘continuity services’ contract to ensure the city and county’s waste continued to be disposed of and treated and the HWRCs continued to operate.
Initially due to end in February 2022, Renewi’s deal was extended by eight months last November.
At the same time, the councils announced they were developing a business case to identify whether they could rectify and use the partially completed facility or whether they would have to close it entirely.
Once the business case is complete, the councils are to reconvene to review and decide how to proceed.
Derby
Representing an estimated population of around 780,000, Derbyshire county council had a household waste recycling rate of 45.1% in the 2020/21 financial year.
Derby city council represents an estimated population of nearly 260,000 and had a recycling rate of 36.7% in 2020/21.
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