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Yorkshire waste PFI seeks planning permission

Planning permission will soon be sought for mechanical treatment, anaerobic digestion and energy from waste plants to be built in North Yorkshire as part of a £1.5bn waste PFI, it was confirmed this week.

A North Yorkshire County Council spokesman told MRW that a planning application would be made by the end of May for the three facilities to be built under its joint 25 year waste PFI with the City of York Council.

The proposed Allerton Waste Recovery Park (AWRP) near Harrogate is expected to treat 320,000 tonnes of waste a year through three key facilities:

  • A Mechanical Treatment (MT) plant designed to receive and treat residual municipal waste. The plant will automatically screen out organic matter and recover metal, paper and plastic for recycling
  • An Anaerobic Digestion (AD) plant to treat the separated organic waste. The plant will produce a biogas which will generate around 1.1 MW of renewable electrical power
  • An Energy from Waste (EfW) plant to treat the waste which remains after separation of the recyclables and treatment of organic waste. The EfW plant will produce steam to feed an electricity generating turbine that will generate around 24MW of power

The planning application for the facilities will be submitted by AmeyCespa, which was awarded the 25-year PFI contract by the councils in December 2010.

The scheme has been awarded £65m in PFI credits, with AmeyCespa funding the remainder of capital works costs through a combination of debt and equity, with the debt requirement thought to stand at around £270 million.

According to MRW’s sister title Infrastructure Journal, six banks are in place to lend to the project:

  • Bank of Ireland
  • Dexia
  • Fortis
  • HSBC
  • Natixis
  • NIBC

The European Investment Bank is also understood to be considering lending to the project.

Ernst & Young is acting as financial adviser to the councils while Ward Hadaway is providing legal counsel. Enviros Consulting is technical adviser, while Marsh is insurance adviser.

KPMG is financial adviser to AmeyCespa with Trowers & Hamlins acting as legal counsel. DLA Piper is legal counsel to the lenders.

Financing of the project is expected to close within the first half of this year, and the facilities are expected to be operational by 2014 if approved.

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