It's
three years since the Localism Bill was proudly unveiled by
Communities Secretary Eric Pickles. It would, he said
“herald a
ground-breaking shift in power to councils and communities
overturning decades of central government control and starting a new
era of people power “ .
There was a lot more of the same sort of
populist guff....
Six months earlier,
South Glos councillors had turned down an
application from SITA to build an incinerator – sorry,
waste-to-energy facility – sorry, Severnside Energy Recovery Centre
- at Hallen, three miles north of Avonmouth. It was much more than a
NIMBY decision; the area was already overcommitted to waste treatment
plant over and above the local need, and the West of England councils
were committed to a 'dispersal' strategy to reduce distances that
waste must be carried . [Since then, our councils, with that
unlikely Local Hero Gary Hopkins at the fore, have abandoned
incineration altogether and gone for more advanced technology, along
with then innovative food waste colections which are both proving
themselves well . Gary survived the Evening Post vilification
treatment. Lets hope Daniella Radice is equally resilient ].
But SITA now saw a
commercial opportunity to burn as much as half the industrial and
commercial waste produced in the West of England area. They appealed
to the Secretary of State against the South Glos. decision. In 2011
there was a planning inquiry, at which Mr Pickles' Inspector took the
SITA side. Pickles duly overturned the local councillors' decision.
So SITA got their permission, but, in the absence of the local
customers they'd described in their appeal, they still had nothing to give
investors the confidence to put up the cash.
Incinerators need an
assured flow of waste to burn – so the operators build in contract
terms so that their customers must pay dearly for any shortfall in supply.
Who cares that that obstructs any new measures to reduce waste or
divert materials for recycling? If local authorities, desperate to
avoid landfill taxes, commit to paying out £1.4 billion to burn
waste by open combustion in an incinerator for 25 years; well, it's a
proven if primitive technology, and financiers are keen to put up the
capital with such low risks and high prospective profits. That's
the theory.
Having had no more luck
selling disposal contracts to local businesses than it had with the
West of England local authorities, SITA cast its net wider. In
west London it found a consortium of 6 underperforming and
unambitious boroughs that were still sending high levels of waste to
landfill, and were pretty low down the recycling tables. A deal was done.
The incinerator would be built at Hallen as that champion of
localisation, Pickles, had ruled; the waste to feed it would now come
from the bins of Ealing, Brent, Hounslow, Richmond, Harrow, and
Hillingdon.
Of the incinerator
outputs, some would be the stack emissions, mostly drifting across
North Bristol; some would be 'bottom ash'; some would be highly
hazardous fly ash. Some of the heat would generate electricity for
the grid, but unless neighbouring customers could be found for the
bulk of the waste heat, that would just be dissipated to atmosphere.
Even given the deal,
the promise of a cast iron long-term contract, and the profits and
low risks that go with it, it seems that investors still didn't exactly
queue up waving their cheque books.
Enter the Green
Investment Bank. Set up about the same time as Pickles was banging
on about the virtues of small government and local decision making,
the GIB is supposed dip into its £3.8 billion to back 'green'
projects in offshore wind, energy efficiency (especially the 'green deal') , or waste
reduction/treatment where its “capital, knowledge and reputation
make the difference that enables a project to be successfully
financed“.
The GIB must be
struggling, what with investors pulling out of offshore wind and the
controversy over the big energy companies 'taxing' consumers with what
Cameron reportedly dismisses as 'green crap'. It's been putting
money into such bizarrely ungreen projects as converting Drax from
coal to biomass – wood pellets imported from the forest clearance in the USA. Apparently
that's a net reduction in local CO2 emissions, so it qualifies.
At Hallen, the GIB has
put £20 million into SERC. As their press release
put it, “GIB will invest £20 million of the senior debt alongside
a lending club of Credit Agricole Corporate & Investment Bank,
Bank of Tokyo-Mitsubishi UFJ Ltd, Sumitomo Mitsui Banking Corporation
and Mizuho Bank. Equity will be provided by SITA UK, Japan's ITOCHU
Corporation and Scottish Widows Investment Partnership.”
Thanks to them, and Mr
“where there's muck there's brass” Pickles, household waste with
plenty of recyclable materials still in it will be rail freighted
from London to be burned here, in an area where our more progressive
local authories have already found ways to recycle more, to pollute
less, and to keep it local.
Happy Christmas.