The £320m Allerton Waste Recovery scheme in North Yorkshire has taken a major step forward with the formal signing of the contract and agreed funding from the Green Investment Bank (GIB) and European Investment Bank (EIB) – the first time they have been partners in this way.
North Yorkshire County Council and City of York Council have formally backed the contract to design, construct and operate the integrated waste management facility with AmeyCespa.
The project marks 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 Corporation, Siemens Bank and KfW-IPEX.
A special purpose company has been created by AmeyCespa, a joint venture between UK company Amey Ventures and Cespa from Spain, with Aberdeen UK Infrastructure Partners (a fund managed by Aberdeen Asset Management) and Equitix as co-sponsors.
The 25-year contract between the councils and AmeyCespa has been on hold since 2005 due to funding and legal difficulties.
In 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.
Construction of the facility is now expected to begin in December 2014 and take approximately 36 months to complete. It will become fully operational during 2018.
Once completed, the facility – Allerton Waste Recovery Park – is expected to process around 320,000 tonnes of household and some commercial waste each year. It will also generate renewable electricity to power the equivalent of over 40,000 homes.