The developer of an energy-from-waste facility in North Yorkshire has moved the project another step forward with the signing of a power-purchase agreement with GDF Suez Energy UK.
AmeyCespa will sell up to 208GWh of electricity generated by the plant at the Allerton Waste Recovery Park to the energy provider at an index-linked rate. The deal includes a floor price, which guarantees a minimum rate should market prices fall.
The plant is expected to be operational by early 2017, and to turn around 320,000 tonnes of waste into electricity to power around 40,000 homes per year.
The £320m scheme has been backed by the Green Investment Bank (GIB) and the European Investment Bank (EIB).
The project marked the first time that the EIB, which has invested £150m, has partnered with the GIB, which is providing £33.1m. Additional financing is also being provided by Nord LB, Sumitomo Mitsui Banking, Siemens Bank and KfW-IPEX.
The 25-year contract between North Yorkshire County Council, City of York Council and AmeyCespa has been on hold since 2005 due to funding and legal difficulties.
In May 2013, Defra withdrew credits for the project, saying it expected the UK to have sufficient capacity to meet the targets without new schemes such as Allerton.
A local group opposing the scheme lost a judicial review on the project’s planning permission in October 2013.