Avondale - Energy recovery from waste

Avondale (part of NPL Group) has secured full planning consent for the development of an energy-from-waste facility to process up to 150,000 tonnes per annum of residual waste. They are looking for around £55 million to be invested in the build and operation.

Avondale (NPL Group) is seeking a developer to realise the financing, build and operation of an energy-from-waste facility to be co-located with other waste operations within the owner’s freehold assets.

The owner will offer:

  • Land for leasing or sale
  • Grid connection agreement
  • Access to Local Authority Waste contracts on a royalty basis 
  • Favourable no-haul ash offtake contracts

Value £55 million

Energy and circular economy

Design, build and operate

Located in Falkirk

More on the Avondale Landfill website

Energy recovery from waste

This consented development comes at a time when the Scottish Government is changing the way that waste is managed across the country. They are moving the management of non-recyclable waste away from landfill to energy recovery in accordance with the principles of sustainable development.

The Scottish Government Zero Waste Plan target is that no more than 5% of Scotland’s waste is sent to landfill by 2025. This scheme will provide a valuable contribution towards this aim, providing Scotland with a new facility which will extract value from its residual waste. 

The scheme comprises the development and operation of a 30 MW energy-from-waste with an electrical output of some 7.5 MWe. Initial years feedstock for the plant is already secured from contracted local government sources that currently run into the Owner’s landfill. Power will be exported to grid through a new secured grid connection with existing line back-up.

Project benefits

There is a minimum secured feedstock of 110 kilo tonnes per annum (ktpa) of contracted waste tonnage with local authorities (117 kt in 2019). These contracts are due to expire in 2024 but the discussions are advancing for these to be renewed by 10-15 years.

The Avondale site also accepts over 300 ktpa of commercial and industrial (C&I) inputs to landfill, some of which could be selected to top-up if required.

Support facilities

The plant is to be co-located with existing waste operations. This will provide security of outlet for ash waste products from the plant and provision for waste handling during periods of shut down for maintenance.

Grid connection

Scottish Power has already accepted a grid offer for this project. 

Private wire and heat off-take potential

The facility is located close to heavy industry at Grangemouth, and a nearby consented large-scale mixed-use development scheme. There is also potential for major greenhouse facilities.

Investment opportunity

  • Construction costs will be £55 million dependant on the preferred technology provider
  • A long lease for more than 30 years or sale is offered
  • The investor/developer will be financed through a blend of debt and equity

Project timeline

Full planning permission was granted on 5 November 2020. 

A developer is sought who wants to lease or purchase the land with a timeline that is within the developer’s gift. There will be scope for a financial and legal close during 2021.

The construction is expected in 2022/2023 and the facility commissioned for use in mid-2024.

More on the Avondale Landfill website

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