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North Yorkshire County Council agreed to award a contract to AmeyCespa for the management of waste in North Yorkshire and York for 25 years.
The decision follows confirmation from the Government that it has approved an allocation of £65 million in PFI credits - a form of grant funding - for the contract.
The solution being proposed will recover value from waste left after reduction, recycling and reuse activities have taken place and will allow North Yorkshire and York to exceed their target of recycling 50 per cent of waste by 2020.
The technologies include mechanical sorting and reclamation of around 20,000 tonnes a year of recyclable materials left in the waste which arrives at the facility; Anaerobic Digestion (AD) to treat food waste and produce green electricity; and Energy from Waste (incineration) which will produce enough electricity to supply around 40,000 homes*. The proposed location for this facility is Allerton quarry and landfill next to the A1M near Harrogate.
The Waste PFI will save the two authorities around £320 million on their combined waste management bills by significantly reducing the amount of waste going to landfill and reducing the amount of landfill tax the councils have to pay. At a time when public services are under extreme financial pressure, this saving will be an important contribution to avoiding cuts in other areas.
AmeyCespa will now submit a planning application for the Allerton Waste Recovery Park. They will also apply for an operating permit from the Environment Agency. If these applications are successful the plant will be operational in 2014.
(CD)
