The UK Green Investment Bank (GIB) has today (3 November) announced its £33.1m investment into the Allerton waste treatment plant in North Yorkshire.
The £319.5 m project is expected to process up to 320,000 tonnes of household, commercial and industrial waste per year. It will divert more than 7m tonnes of waste from landfill over its lifetime – equivalent to the annual waste arisings of more than 300,000 households – and recover over 1.5m tonnes of recyclable materials. In addition, it will generate 203 GWh of electricity per year, enough to power over 40,000 households.
The PPP project is being developed by North Yorkshire County Council and City of York Council alongside sponsors AmeyCespa, Aberdeen UK Infrastructure Partners (a fund managed by Aberdeen Asset Management) and Equitix.
GIB will provide long-term loan financing and an equity bridge loan alongside Nord/LB, Sumitomo Mitsui Banking Corporation, Siemens Bank, KfW-IPEX and the European Investment Bank (EIB). This is the first joint-investment between GIB and EIB.
Shaun Kingsbury, UK Green Investment Bank – “This innovative project is a best-in-class example of how local authorities can improve recycling and generate significant amounts of renewable power from household waste”
The new facility in Allerton, between Harrogate and York, will be constructed at an existing landfill and quarry site by contractor AmeyCespa, who will operate the plant on completion. This will be AmeyCespa’s largest waste project to date.
The proposal was originally agreed in principle in December 2010, when the County Council and City of York Council awarded a long term contract to AmeyCespa.
In February 2013 the Allerton project was among those whose PFI credits were pulled by Defra (See CIWM Journal Online story).
The project will process all of the residual waste from North Yorkshire County Council and the City of York with the remaining capacity of the plant used to process commercial and industrial waste sourced by AmeyCespa.
It is GIB’s first waste investment to feature such an extensive range of waste treatments and advanced technology. The new treatment plant will enable value to be recovered from almost every aspect of North Yorkshire County Council and City of York Council’s waste, including:
- mechanical treatment facility that will recover metal, paper and plastic for recycling
- onsite anaerobic digestion plant to treat organic waste which will generate around 8 GWh of renewable electricity per year
- energy-from-waste facility that will produce steam to feed an electricity generating turbine, generating 203 GWh of electricity – enough to supply the equivalent of more than 40,000 homes.
More than 400 jobs are expected to be created during the construction process and an additional 70 when Allerton Waste Recovery Park becomes operational.
Shaun Kingsbury, chief executive, UK Green Investment Bank, said: “This innovative project is a best-in-class example of how local authorities can improve recycling and generate significant amounts of renewable power from household waste. GIB is proud of its track record supporting innovation in the waste and recycling sector and particularly pleased that this impressive facility is the first to feature the full complement of waste treatments and new technologies.”