October 24, 2011 / 5:26 PM / 6 years ago

Developer dumps UK waste power plant

LONDON (Reuters) - A UK subsidiary of U.S. energy-from-waste company Covanta Holding Corp. has scrapped plans to build a 400 million pound waste-fired power plant in Wales, which would have created 100 full-time jobs, the company said on Monday.

“The local authorities have adopted a fragmented approach (not a national approach) to dealing with residual waste,” said Malcolm Chilton, managing director of Covanta’s European business, in a letter to Britain’s planning body.

“This makes the current proposal for the plant unviable.”

The Brig y Cwm power plant would have collected 750,000 tonnes of non-recyclable household and business waste from the southern Wales area per year and was expected to have a power production capacity of 67 megawatts (MW), enough to power two local county boroughs.

Covanta Energy decided to drop the project after local Welsh authorities decided to sell non-recyclable waste to smaller facilities across the country, rather than one large station, a spokesman said.

“It’s a shame the project isn’t going ahead. The heat produced at the plant would have acted as a magnet for other businesses in the area,” he said.

He added Covanta Energy’s decision had nothing to do with the fact the government last week proposed to halve state subsidies for combined heat and power plants generating energy from waste.

The Welsh project would have created around 650 jobs during construction and 100 full-time jobs during its operation, according to Covanta Energy.

Two weeks ago Britain’s Infrastructure Planning Commission approved Covanta Energy’s 65-MW energy-from-waste plant at Rookery in Bedfordshire.

Reporting by Karolin Schaps; editing by Jason Neely

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