Waste-to-energy solutions firm Reclaim Resources has introduced a new financial package aimed at UK councils to allow them to install its technology the Vantage Waste Processor.
Cash-strapped councils will not have to raise funds for the project as Reclaim Resources will do it.
The VWP takes household waste and transforms it into biomass ready for conversion into a range of resources, including electricity and bio-ethanol. The VWP reduces raw, unsorted household rubbish by up to 60% using thermal hydration, processing and sanitising waste material through a continuous feed rotating stainless steel chamber.
Speaking to MRW Reclaim Resources managing director Philip Hall said: It is extremely exciting news for councils that are facing massive cut backs and who have seen a lot of projects that have failed to secure funding. We will provide the funding to build a plant (approx. £25 million) which will process about 160,000 tonnes of municipal waste per year. This will in turn produce approximately 30 million litres of bio-ethanol which we will sell on behalf of the council.
The council will make around £17.5m a year from the sale of ethanol and the saving on gate fees. All the council has to provide is a £15,000 start up fee for the due diligence and legal contract package.
There is no risk to the council who will receive a quarterly payment through ethanol sales. All the council has to provide is a suitable site for the facility to be established on and a contract for the continuous supply of waste.
This package does not require any capital, no investment or no guarantees nothing! This is a really revolutionary package.
The local authorities will then own the entire plant after five years where they will then take full ownership.
Reclaim Resources will be able to get repayment of the capital through the interest it recoups.
The firm has received worldwide interest in its technology and last year it signed a contract in the Philippines to install its VWP technology in the Province of Zambales (see MRW story). But UK interest has yet to take off. Hall said that it was a new technology and councils were currently not familiar with it.
Hall will be showcasing his technology at strategic sites across the UK starting with the Welsh Assembly Government in Cardiff on 23 June.