The United Kingdom (UK) has traditionally used landfill disposal as the main method of waste management. However, it has long been recognised that landfilling is unsustainable due to its long term harmful effects on the environment and public health.

Landfill also places a high long term risk on groundwater quality, which could threaten the availability of clean water for future generations.

Under the European Union (EU) Landfill Directive, and starting in 2006, member nations were required to divert biodegradable municipal waste (BMW) from landfills. The UK has also committed to the EU Renewable Energy Directive, which binds it to sourcing at least 15% of its energy mix from renewables by 2020.

Through the last decade the emphasis was on recycling, and this is still the case, but recycling will only achieve waste diversion up to a point. Therefore, to meet these targets, the UK is developing alternative waste management options as well as planning to achieve considerable deployment of renewables.

Throughout 2009 a number of aspects of UK waste management policy that have been in place for some time came together so that for the first time a genuine shift in the industry could be detected. Investors began to see the wisdom of those that have already anticipated this new vision and have committed to investment in the waste technologies, as many of the smaller more nimbly operators have begun to make profits. Where profit is to be made others will now follow to secure waste contracts for the resource that collected material provides them.

If asked what the single biggest influence on this was during 2009, I would say it as the government’s Landfill Tax escalator policy which meant that for most waste disposers, for the first time, landfill disposal actually became more expensive than recycling. You can argue around the detail here, but I had not before the summer of 2009 witnessed recycling companies able to say they could offer price competitive disposal prices when head to head with the traditional landfill operators.

Another major driving force in UK waste management which is powering the evolution from a disposal problem to a resource optimisation opportunity are the high targets for waste diversion from landfill, and 20 year or longer integrated waste management contracts. These are public/private partnership projects which the UK government is pushing ahead with now in order to achieve those targets.

Here to, we saw a major milestone achieved while the recession was biting the hardest early in 2009. This was the successful planning application, and award of contract, for the £4 billion Greater Manchester Waste PFI Contract, the largest of its kind in Europe, and all built upon stakeholder involvement. However, the Greater Manchester PFI Contract is only the most high profile example of a procurement revolution which probably reached its peak of activity during 2009, and saw similar contracts either largely in place or planned throughout the nation.

The year also saw a number of these projects hit the headlines, and some Energy from Waste schemes being pushed back at planning (Cornwall and Edinburgh for example).

However, the trend continued and accelerated so that for all waste streams and/or locations where re-use or recycling of waste is not viable, energy recovery is being reinforced as the preferred option, with disposal used only as a last resort.

For a long while the major Energy from Waste producer has been from landfills, and it has been landfill gas (LFG) utilisation. However, the relative importance to LFG utilisation as a proportion of total energy from waste production will now be expected to decline.

Each month in the years to come we will see the rollout of new energy from waste (EfW) projects coming on-stream. However, while the adoption of new waste technologies is being supported in the UK by government departments, the perceived high risk for the PFI partnerships, has remained high. 2009 was not good for implementing the more innovative of these.

The increased cautiousness of the banks funding the private element of these projects has come at a very unfortunate time, as it has in my view severely detracted against the bankability of schemes using these new technologies. In fact, 2009 saw the shelving of quite a number of the more adventurous new waste technology options in favour of more traditional incineration technology.

During the year events also reinforced the wisdom of encouraging the use of EfW and other home grown renewable energy source, within the global scene. Most will remember that early in 2009 we saw the deep rationing of natural gas supplies to some European nations which were themselves unconnected with a producer country dispute. This held up supplies during the coldest weather and in a completely arbitrary fashion.

Most now strongly support the benefits of renewable energy for its improved energy supply security, ability to provide climate change mitigation when combined with stiff recycling targets and the highest possible waste diversion, and not least its resource efficiency.

However, good though that may be for waste as an opportunity, the main event of the year was the new found security to the recyclers which came with the attainment of the economic tipping point, whereby landfilling has become more expensive than most forms of main stream recycling activity. From now on the markets in recyclates will operate on a progressively more stable and normal economic basis.

Recycling has always made sense for the environment, but from now on it will also become a natural economically favourable option as well We can also look forward to the future knowing that the landfill tax will rise again in April 2010, taking us further into the new UK era of waste as a resource of opportunity.

Waste management firm Viridor has expressed its disappointment at East Lothian council’s decision to reject planning permission for its Dunbar combined heat and power plant despite “strong recommendation” for approval from the council’s planning officers.

East Lothian’s planning committee yesterday (September 1) voted unanimously against the company’s proposal to build a 300,000 tonnes-a-year capacity energy-from-waste facility on land at its existing Oxwellmains landfill site, which lies 40km east of Edinburgh.

Another EfW Plant Rejected

This was despite the planning documents containing a recommendation from planning officers to approve the project subject to a number of conditions – including beginning operations within three years of approval being granted.

The spokesman said that, under new planning controls, the councillors would now have a “few weeks” to formulate a document outlining the reasons why they refused permission.

Commenting on the rejection, Steve Don, Viridor’s Scottish regional manager, said: “Despite a recognition of need, SEPA describing the proposal as the ‘best practical environmental option’ and a strong recommendation for approval from East Lothian council professional officers, Viridor is disappointed that councillors chose to refuse our application.

Proposal
Under the proposal, the Dunbar facility would have been used to process 150,000 tonnes-a-year of municipal residual waste collected from Edinburgh and East and Mid-Lothian councils, and 150,000 tonnes-a-year of commercial and industrial residual waste from the surrounding region.

Viridor had previously revised its planning application for the proposed Dunbar facility in May 2008 following a public consultation, which saw its initial 450,000 tonne-a-year capacity proposal scaled-down to “reflect local need” (see letsrecycle.com story).

Mr Don added: “With ambitious Scottish and European Zero Waste targets we need both increased recycling and smarter ways of managing residual waste. Whilst this decision will inevitably delay our journey to sustainability, we will be reviewing in due course.”

The spokesman for East Lothian said that he expected Viridor to appeal against the decision, which would “probably be subject to a public inquiry”. More here.

The news comes just a month after Veolia ES was named preferred bidder for the contract, ahead of competitor SITA UK.

The 20-year contract, awarded by the MWDA on behalf of the Merseyside and Halton Waste Partnership, makes Veolia ES responsible for operating the area’s network of 16 household waste recycling centres, plus its materials recycling facility (MRF) at Bidston.

As part of the contract, Veolia ES will invest in all these existing facilities and also deliver a new £16 million flagship 100,000 tonne-a-year capacity MRF and visitor centre at Gillmoss, Liverpool.

MWDA chair, councillor Kevin Cluskey, said: “This is an enormous achievement for Merseyside and will be a great boost for achieving improved recycling rates. In such financially depressed times it is encouraging to see this size of contract and level of investment in Merseyside.

He added: “Veolia’s arrival on Merseyside marks the start of a whole new era for recycling on Merseyside. They will bring major new investment in public facilities and improved recycling rates based on their experience as part of the UK’s leading waste management company.”

Procurement

The waste management and recycling contract is part of a major procurement exercise by the MWDA with its five local district council partners – Liverpool, Knowsley, Sefton, St Helens and Wirral – and Halton borough council, targeting improved recycling rates across the Merseyside and Halton area. It also includes the operation of the existing four transfer stations servicing the waste collection authorities.

Denis Gasquet, chief executive of Veolia ES, commented: “We are delighted to have been awarded this prestigious Waste Management and Recycling Contract by MWDA which we believe will be the catalyst to further improving recycling performance in Merseyside.

“Our investment in both new and existing recycling infrastructure will boost recycling capacity and ensure the HWRC network is user-friendly and attractive to visit. By supporting education initiatives to publicise ‘Reduce, Reuse, Recycle’, we will also generate more interest in recycling across the region,” he added.

The ‘Waste Management and Recycling’ contract is the smaller of two deals currently being procured by the MWDA as part of its £3.3 billion procurement programme which aims to reduce the region’s reliance on landfill and increase recycling rates over the next 25 years.

More at the Lets Recycle website here.

This will encourage the UK waste industry to see that these types of contract are beginning to move again since the dire effects of the credit crunch started last summer.

The following is from the LetsRecycle News item:

Greater Manchester’s £3.8 billion PFI contract with Viridor Laing was the first to be pushed through by a new Treasury unit set up to help projects struggling in the current financial climate, it emerged on 8th April.

The European Investment Bank – which is lending £182 million to the project – has revealed that the Treasury’s Infrastructure Finance Unit set up last month helped the deal reach financial close this week (see letsrecycle.com story). The project was the first to be assisted in this way.

The details came as the EIB revealed the full breakdown of funding received for the project, from a variety of banks and government sources.

The EIB said: “HM Treasury ‘s Infrastructure Finance Unit has joined that syndicate of commercial banks and the EIB to enable the Greater Manchester Waste Disposal Authority’s PFI scheme to achieve financial close. The Unit was established recently to enable PFI projects which will create jobs and deliver vital infrastructure to proceed.

“This is the first transaction completed by the unit,” it added.

The EIB explained that the £182 million it was lending to the project would be split between Viridor Laing and Ineos Runcorn TPS. Viridor will receive £100 million to treat municipal waste provided by the Manchester authority, including the production of solid recovered fuel from waste. Ineos Runcorn TPS will receive £82 million to incinerate the solid recovered fuel.

The bank explained that further financing would be provided by other banks, including £95 million from the Bank of Ireland, £55 million from Spanish-based bank BBVA, £55 million from Lloyds Banking Group and £40 million from Japanese-based bank SMBC.

Simon Brooks, EIB vice president responsible for lending activity in the UK, said: “We are delighted to help this landmark project. Not only will Greater Manchester residents see the environmental benefits of the project in their daily lives, but the project represents an important step for the UK on the road to meeting national and EU-wide waste and recycling targets.”

The EIB said that Greater Manchester PFI project was expected to contribute directly to the UK’s commitment to achieving 50% recycling/composting and a 65% diversion from landfill by 2020 in accordance with EU requirements. The EIB said this was of particular importance for Greater Manchester which is the largest of England’s six statutory waste disposal authorities, accounting for five percent of national waste.

Just when will our society realise that when everyone produces such large quantities of waste, the waste HAS to be processed and disposed of somehow, and somewhere, and that it is unreasonable to expect to send it out of the area in which the waste was created!

In our first case the Surrey County Council Energy from Waste (EfW) facility, which only received planning permission in October 2008, now looks set to face further delays after a successful challenge against its development by the local parish council. Surrey Waste Management’s proposal for the facility at the Clockhouse Brickworks site in Capel, Surrey, has suffered a myriad of set-backs and challenges since the original planning permission, granted as far back as 2002, was overturned.

An official judgment is expected to have been made by the end of February (after this issue has gone to press). The 100000 tonnes capacity facility was intended to be operational in 2012 as part of a PFI-funded deal between Sita subsidiary, Surrey Waste Management, and the county council.

Our second problem waste processing facility in Cornwall has been rejected and new plans must be drawn up, so the problem is really serious for the citizens of Cornwall. The following is an extract from the BBC News item highlighting the problem:

New county waste plans ‘needed’

An alternative strategy for dealing with Cornwall’s waste needs to be drawn up as soon as possible, a council scrutiny committee has ruled.

The call to Cornwall Council comes after plans by waste company Sita for an incinerator at St Dennis were refused two weeks ago.

Sita then withdrew proposals for a waste centre at Scorrier last week.

The council will decide whether to follow the recommendation for a waste plan after elections later in the year.

Cornwall Council’s Environment Policy and Development Scrutiny Committee recommended that a dedicated panel be set up to look at alternatives.

The committee’s chairman, independent councillor Mark Kaczmarek, said: “It is essential that Cornwall has a clear way forward to deal with its waste.

“Our remaining landfill is running out. Far too much time and money has been wasted over the last few years and no solution to Cornwall’s waste disposal has been created. Cornwall Council must make this issue a priority.”

The full council will decide whether to follow the recommendation for a waste plan after it holds its elections in June.

County councillors voted 20-to-one on 26 March against Sita’s bid to build a waste-to-energy incinerator in the county. Planning officials had advised the council to grant the application.

The £117m waste-to-energy plant would have handled all of Cornwall’s waste – an estimated 240,000 tonnes of waste a year which would, in turn, have generated power for thousands of homes across the county. More here.

Manchester waste PFI deal to be done by end of month

Europe’s largest waste management contract, the £3.3bn Greater Manchester waste PFI, will be finalised by the end of the month, an insider on the project has claimed.

The source said the banks involved in the 25 year contract were close to agreeing the struc­ture of the finance.

A joint venture between infrastructure investor John Laing and waste contractor Viridor was originally named as preferred bidder by client Greater Manchester Waste Disposal Authority (GMWDA) in January 2007.

But the complexity of the deal and increasingly difficult lending conditions caused by the credit crisis have meant that every deadline for the project has so far been issed. Last December GMWDA predicted that the deal would be wrapped up by Christmas 2008 (NCE 4 December 2008).

I think that many are waiting anxiously to see these signings go through. The industry needs this vital re-assurance that the banks are still able to put together a deal of this size, are lending, and that the credit crunch has done its worst… (The Waster)

26-01-2009

Gasification specialists Energos have been appointed to provide the technology for a multi-million pound waste treatment facility being built in Derby.

The company, which is part of Manchester-based renewable energy firm ENER-G, will help to develop a 140,000 tonne-a-year gasification facility on Sinfin Lane in Derby on behalf of a joint venture between United Utilities and services firm Interserve.

An artist’s impression of the Sinfin Lane facility that will use Energos’ gasification technology

United Utilities and Interserve were confirmed on January 13 as preferred bidder for a 27-year deal, beginning in 2010, to design, build and operate a facility to process both Derbyshire county council and Derby city council’s residual household waste.

Energos’ appointment means the plant will use their patented version of the advanced thermal treatment process to convert the waste into a gas, which will then be used to produce 8MW of electricity for export to the National Grid.

Energos’ process has already been installed in a plant on the Isle of Wight which opened last year (see letsrecycle. com story) and, in July 2008, the company submitted a planning proposal to build an 80,000 tonne-a-year capacity facility at Knowsley, on Merseyside (see letsrecycle. com story).

The Derby project’s joint venture project director, Blair Marriott, said: “We are pleased to be working with Energos which offers a world class, low emission technology and a proven reputation for excellence.

“Our proposed state-of-the-art waste management facility points the way forward for UK municipal solid waste management and is a viable and environmentally friendly alternative to landfill and incineration,” he added.

Energos’ managing director, Nick Dawber, described the facility as “a community-sized solution to responsibly dealing with local waste.”

United Utilities and Interserve were announced as preferred bidder for the Derbyshire contract in December 2008, winning a lengthy head-to-head contest with Spanish-owned Waste Recycling Group (WRG) (see letsrecycle. com story).

The deal represents United Utilities first major contract success in the waste sector, though it is one of four shortlisted bidders for the Cheshire PFI contract (see letsrecycle. com story), and is also part of the consortium the ‘Resource from Waste Alliance’ which is the running for the Merseyside PFI waste deal (see letsrecycle.com story).

It is aimed at both public and private sector waste practitioners and has received strong support to a high level in the Government. It delivers a strong message about UK policy, promoting sustainable design, resource efficiency and reducing climate change.

The guidance covers a wide variety of waste facilities, from small community and municipal sites such as compost units on estates, to larger sites such as Combined Heat and Power facilities. The aim of the guidelines is to outline key design principles, the design process, best practice in design and how best for waste professionals to consult the public.

Although the final decision for waste facilities will ultimately lie with the local authority this guidance should assist with providing the tools for both the public and private sector waste management professionals to make the best decision at every stage in the design process.

For further information about the guidance or to obtain a free copy of the guide visit Defra’s website.

Waste facilities in Leicestershire and the South West will see major improvements thanks to a combined £181.6 million in funding announced by Defra today.

In Leicestershire, the Private Finance Initiative (PFI) project is expecting to divert 98,000 tonnes of Biodegradable Municipal Waste from landfill in 2020. In the South West the PFI project will divert 293,000 tonnes from landfill in 2020 – making an important contribution to the UK’s landfill directive targets.

Leicestershire plans to build on its already successful recycling and composting record. Not only does the county expect to reach the Government’s 2020 recycling target of 50 per cent 10 years early, but with further plans it aims to reach 58 per cent by 2017. In the South West, 92 per cent of the biodegradable waste in the area will be diverted from landfill.

The schemes could also deliver estimated total net carbon savings of 53,260 tonnes in 2019/20, compared to the current situation. The potential for combined heat and power (CHP) could increase this further to 121,500 tonnes of savings over both projects.

Waste Minister Joan Ruddock said:

“Reducing our reliance on landfill is an essential part of the drive to tackle climate change and I welcome the ambitious commitment made by Leicestershire and three authorities in the South West.

“PFI agreements like this create a real incentive for local authorities and industry to work together to cut waste and make better use of the waste we do create, as well as reducing our impact on the environment.”

“The negotiations for the new contract are progressing in a positive manner towards a close and the start of the new contract”; said Pam Taylor, GMWDA.

On April 11, the Authority said that it was on course to sign the long-term deal with preferred bidders Viridor and Laing on April 29.

This followed months of the Authority pushing the signing back, from an original date of June 2007.

However, today, the Authority would not comment on when the contract would be signed and remained tight-lipped over its progress.

Echoing a statement from earlier this month, a spokeswoman merely said that the authority was making good “progress” in its negotiations.

Pam Taylor, communications support officer for the GMWDA, said: “The negotiations for the new contract are progressing in a positive manner towards a close and the start of the new contract. As soon as any further information and pictures are available, these will be sent out.”

The GMWDA contract is hugely dependent on sending refuse derived fuel to an energy from waste plant being proposed by chemicals firm Ineos Chlor, which is still awaiting planning permission.

The application is currently being decided by John Hutton MP, secretary of state for Business, Enterprise and Regulatory Reform, but is not thought that it will be decided imminently – which could have contributed to the delay.

The Treasury is also adjusting the rules by which authorities and contractors have to adhere to in order to issue a promissory note for £100 million of PFI funding, already approved by Defra.

Under Viridor and Laing’s proposals, around 600,000 tonnes of Greater Manchester’s waste which cannot be recycled will be taken to five new mechanical biological treatment and anaerobic digestion plants located in Salford, North & South Manchester, Oldham and Stockport.

See letsrecycle.com story.