Herefordshire Council’s cabinet approve plans for new incinerator needing £40m loan (From Hereford Times)
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Herefordshire Council’s cabinet approve plans for new incinerator needing £40m loan
HEREFORDSHIRE Council’s cabinet has this afternoon (Thurs) unanimously approved plans to progress with the proposed new Energy-from-Waste (EfW) incinerator in Worcestershire that needs a £40m loan.
Worcestershire County Council's Cabinet also approved plans to progress with the plant. The proposals now need support from the full council of both and central government - Decisions are expected next month.
Earlier this week, than plan was passed by Herefordshire Council’s overview and scrutiny committee, but only after opposition members made the case for alternatives to be explored.
Cabinet heard this afternoon that the £40m loan from Herefordshire Council to Mercia Waste helped make a saving of £128m against the cost of “doing nothing”.
The council’s case, cabinet heard, is that when taking into account the nominal costs - which include inflation over the life of the EfW until 2042- - savings are around £400million.
Herefordshire Council and Worcestershire County Council share a Joint Municipal Waste Management Strategy. The incinerator, at Hartlebury, near Stourport, is integral to that strategy and its aim of diverting waste from landfill and the potential for big year-on-year government fin imposed fines.
As pitched, the incinerator will have capacity to divert 200,000 tonnes of waste from landfill each year. Planning consent for the plant was given by the Secretary of State in July 2012 with construction expected to start next year for completion by early 2017.
A forecast for 2023/24 – when the current landfill site is expected to be full - has 222,518 tonnes of residual waste produced in Worcestershire and Herefordshire. Incremental Landfill Taxes set by Central Government have increased from £6 per tonne in 1996 to £80 per tonne from April next year.
The cost of pursuing the EfW option over its whole cost life (until 2042) is £700million. Cabinet heard that inn 2016/17 the uplift – or additional- payment is £6.6million from the point EfW becomes operational.
Cabinet heard that the council had effectively ruled out alternative technologies as untested against EfW, taking financial and environmental criteria into account.
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