Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of MRW, please enable cookies in your browser

We'll assume we have your consent to use cookies, so you won't need to log in each time you visit our site.
Learn more

UK waste project no longer PFI

East Riding and Hull City Councils have scrapped plans to procure their proposed energy from waste (EfW) facility as a PFI and have withdrawn an application for PFI credits.

The councils had applied to Defra for £73.7 million in credits in November last year, but the application has now been withdrawn.

Project sponsor Waste Recycling Group (WRG) had hoped to reach financial close this year on the 25-year concession [Projects Database] which would have delivered an energy from waste (EfW) incinerator at Salt End. However, difficulties in financing the project - alongside the ongoing protests - have forced the authority to seek an alternative solution to PFI.

A spokesperson for the authority said: "East Riding of Yorkshire Council and Hull City Council are not pursuing the PFI financing option for the energy from waste facility because the effects of the global financial crisis have made this form of financing unaffordable.

We reiterate our commitment to energy from waste, which remains the chosen method to deal with the councils' residual waste."

WRG will now review funding options in order to deliver the proposed plant which would handle around 240,000 tonnes of waste per annum. The group has held the waste management contract with the two councils in the north of England since 1999.

A spokesperson for WRG said: "WRG understands the difficulties caused by the current global economic climate, and the need for Hull City and East Riding of Yorkshire councils to ensure they deliver an affordable residual waste treatment facility for their council tax payers.

"The Company remains committed to working with the two councils to deliver an energy from waste facility at Salt End that will fit with their long-term waste and resource management strategy and will consequently allow them to meet their important landfill diversion targets.

"WRG is confident that, following a full review of options, we will be able to bring forward proposals that will be appropriate within the current economic climate."

Ashurst is acting as legal adviser to WRG, while Ernst & Young is providing financial advice. Deloitte is acting as financial adviser to the councils.

This article first appeared on

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.