North Lincolnshire council announced yesterday (April 6) that it has cut the shortlist for Lot 1 of its long-term waste treatment contract, which is worth £200-300 million over 25 years, down from the four companies it shortlisted in December 2009 (see letsrecycle.com story) to two.
However, Sterecycle is still in the running for the second lot of the contract, known as Lot 2, which covers the treatment of organic waste and for which the shortlist is yet to be narrowed down. The other companies in the running for this deal include Waste Recycling Group, Shanks and Suffolk-based composting firm County Mulch and a decision on a narrower shortlist is expected in around four weeks' time.
Bids
North Lincs Green Energy's (NLGE) bid is based on plans to build a £40 million gasification facility at Singleton Birch's site at Melton Ross which will use both residual waste from North Lincolnshire council and other biomass material to produce heat and power from 2012.
Last year, Singleton Birch appointed gasification specialist Energos to provide the gasification technology for the facility, which already has planning permission (see letsrecycle.com story)
Meanwhile, WRG's bid is based on plans, subject to planning consent, to develop a mechanical biological treatment (MBT) plant on one of the council's industrial parks near Scunthorpe using Waste Treatment Technologies' (WTT) MBT process.
The plant would only treat the council's waste and, after recovering recyclables from the waste stream, would turn any residue into solid recovered fuel, known as Climafuel, for use at cement manufacturer CEMEX's cement kiln in nearby South Ferriby.
The South Ferriby kiln already takes in waste material in from companies including Mid UK Recycling and Orchid Environmental.
Employment
North Lincolnshire council stressed that both solutions would recover recyclable metals and would provide local employment opportunities during construction and operation of the facilities.
Cllr Len Foster, cabinet member for neighbourhood, environmental and communities, said: “This is one of the biggest contracts North Lincolnshire council will ever let. Subject to the formal decision, I'm delighted that two local companies are still in the running. That shows our local businesses can compete, and with the very best. And it provides local job opportunities.”
Cllr Foster stressed that the council – which has used gasification as its reference technology – was keen to avoid sending its waste to incineration.
He said: “I've always said there will be no incinerator in North Lincolnshire and there won't be – neither solution uses an incinerator. And subject to planning neither solution will be siting a treatment facility close to any residential development.
“The new waste contract has to be a good thing. The council has been concerned with the recent increases to land fill tax and the potential effect on the Council taxpayers of North Lincolnshire. Landfill tax is increasing at an alarming rate – that's a good thing for the environment as it's forcing us to act.”
A council spokesman added that the council expected to award both the residual waste and organic waste treatment lots of its contract in December 2008 – with preferred bidders to be revealed over the summer.
“Delighted”
A spokesman from WRG said the firm was “delighted” it had been selected as one of two companies to submit final tenders for the council's waste contract.
He said: “The proposal will have the combined benefit of reducing North Lincolnshire's reliance on landfill – thus helping them to meet tough Government landfill diversion targets – as well as displacing the use of fossil fuels in cement making.
“WRG anticipates submitting a planning application for the proposed facility in the early summer when more information will be made available. The company will be holding a public consultation on its proposals, both before and after submission of the planning application, which itself will be subjected to the usual open planning process by North Lincolnshire council.”
Singleton Birch and Biffa were unavailable for comment.
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