POWER PURCHASE AGREEMENT FOR AMEYCESPA’S 320,000 TPA WASTE TO ENERGY PLANT IN YORKSHIRE

Waste and recycling firm, AmeyCespa, has signed a Power Purchase Agreement (PPA) with energy firm GDF SUEZ Energy UK for the output from its major new 320,000 tonne per year waste to energy facility in North Yorkshire

Waste and recycling firm, AmeyCespa, has signed a Power Purchase Agreement (PPA) with energy firm GDF SUEZ Energy UK for the output from its major new 320,000 tonne per year waste to energy facility in North Yorkshire.

Under the agreement, GDF SUEZ Energy UK will buy all of the electricity generated by Allerton Waste Recovery Park, which will process household and commercial waste to generate around 200 GWh of energy per year - enough to power around 40,000 homes.

The plant is expected to be operational by early 2017, with GDF SUEZ Energy UK contracted to purchase up to 208GWh of electricity annually.

According to the energy firm power purchase agreements are essential to the viability of any new renewable energy plant as banks and other funding providers need to be assured that the money they invest will be repaid through the sale of energy to a reliable, creditworthy power purchaser.

The company added that of particular interest to AmeyCespa and its funders were the three waste to energy PPAs that GDF SUEZ Energy UK has secured in recent years, demonstrating an ability to tailor contracts to the needs of this specific type of plant.

Under this PPA, GDF SUEZ explained that it will buy the output from Allerton Waste Recovery Park at an index-linked rate, providing AmeyCespa with a market reflective price for its energy.

The company added that 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.

Once completed, Allerton Waste Recovery Park will divert around 95% of York and North Yorkshire’s household waste from landfill.

According to the developer, in addition to environmental benefits, the anticipated long-term savings on the cost of waste treatment are expected to be around £250 million over the life of the contract.