Indaver not abandoning Waste-to-Energy plans in Ireland

Indaver is to continue with the approvals process for the proposed Waste-to-Energy facilities in Meath and Cork.

Both projects are in line with government policy, which includes a commitment to divert waste from landfill and develop alternative waste infrastructure. However, policy drivers are required to create suitable market conditions prior to the company investing over €250m in the waste to energy sector in Ireland.

Following a second oral hearing of appeals for the Meath facility in March, Indaver now await the final decision from An Bord Pleanála. If planning permission were to be granted, the company would be in a position to begin construction in 2007.

The commencement of the construction phase for projects depends on a number of policy drivers -

* Due to excess landfill and reduced gate fees, an increased landfill levy is imperative to ensure competition in the waste market
* A ban on certain types of waste being disposed of to landfill
* Direction of waste further up the waste hierarchy away from landfill, which is at the bottom of the waste hierarchy.

The implementation of one - or a combination - of these policy drivers in the short to medium-term, would provide certainty - which would allow the company progress with the construction phase of the Meath facility.

Whilst excess landfill does not impact on the industrial waste-to-energy facility proposed for Ringaskiddy, lack of policy drivers required to create suitable market conditions for the municipal waste-to-energy plant is impacting on the development of the Ringaskiddy project.

Expansion into the UK Market
As a European company, the Indaver Group is looking to expand its services into other European countries. This will strengthen an on-going commitment to offer the highest operating standards in the waste management industry to customers.

The Group has been monitoring the UK waste industry for some time - in particular, UK government policy and infrastructural requirements.

In its March 2007 budget, the British Government introduced an annual increase of £8 (€11) per tonne on its current landfill tax of £24 (€35) per tonne from April 2008 until - at least - 2010-2011. This will bring the UK landfill tax to over £48 (€70) by 2010.

This increase in the landfill levy provides the certainty that Indaver requires in order to expand into the UK marketplace. For this reason, Indaver will be focusing on waste-to-energy infrastructural projects in the UK market for the coming year.