Firm poised to win £250m 27-year contract using waste to make cement

The contract will be awarded to WRG in partnership with local cement maker CEMEX of South Ferriby in June, subject to the conclusion of procurement procedures.

The deal will see the area’s first mechanical biological treatment (MBT) plant built on Normanby Enterprise Park to the north of Scunthorpe, where household waste, including plastics, packaging and food, will be sorted, separated and finely chopped to make “Climafuel”, which can be used in CEMEX’s cement kilns at South Ferriby and Rugby.

Climafuel, which ends up looking like shredded paper, has been used successfully for some years as an alternative to traditional fossil fuels.

It should lead to an 87 per cent reduction in the amount of waste landfilled, and a drop in the use of imported pet coke from South Africa, used to fire the kilns.

John Coates, project director at North Lincolnshire Council, said: “I am pleased that in the current climate and problems with the procurement of similar waste contracts in other parts of the country, we now have a solution that is more sustainable by diverting local waste from landfill.

“This will mean that we avoid the huge increase in landfill costs, which are set to rise to £80 a tonne.

“It will also help meet Government landfill diversion targets, and will bring financial certainty in these challenging times.

“By producing an alternative renewable fuel, we will help protect the environment and see a reduction in man-made carbon emissions.”