Energy company GDF SUEZ Energy UK (GSE) has signed a power purchase agreement (PPU) with AmeyCespa for the entire output of its new energy-from-waste facility in North Yorkshire.
Under the agreement, GSE will buy all of the electricity generated by Allerton Waste Recovery Park, which will process around 320,000 tonnes of household and commercial waste each year, generating enough renewable electricity to power around 40,000 homes.
The plant is expected to be operational by early 2018, with GSE contracted to buy up to 208 gigawatt hours of electricity annually.
The company will buy the energy at an index-linked rate, providing AmeyCespa with a market-reflective price for its energy. To provide an assured return on investment for the project’s funders, the PPA also incorporates a floor price, guaranteeing a minimum rate should market prices fall steeply.
According to GSE, Allerton Waste Recovery Park will divert around 95 per cent of York and North Yorkshire’s household waste from landfill, with anticipated long-term savings of around £250 million over the life of the contract.
Planning permission for the facility was granted in 2012, but the project struggled with financial difficulties after the Department for Environment, Food & Rural Affairs (Defra) withdrew £65 million in private finance initiative (PFI) credits in 2013. However, funding for the project was secured in 2014, including a £33 million investment from government-funded UK Green Investment Bank (GIB).
Find out more about the Allerton Waste Recovery Park.
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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?
There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.