Sinfin waste plant: Councils agree £93.5m settlement with firm

The Sinfin waste plant was originally due to open in 2017 but has never been fully operational

Two councils have agreed to pay out £93.5m over a waste treatment plant in Derby which has never been used.

Derby city and Derbyshire county councils have reached a settlement with the administrators of the firm behind the Sinfin waste treatment plant.

RSS was contracted to design, build and operate a waste treatment facility but after it did not pass initial tests, the contract was axed in 2019.

The authorities said the settlement avoids a lengthy court case.

Plans had faced protests over air quality and an alleged plague of flies

Plans for the plant had also provoked fierce opposition from those living nearby.

Complaints had focussed on air quality and other environmental issues, with the plant being blamed for a fly problem during testing.

The Sinfin waste plant was intended to divert 190,000 tonnes of rubbish per year away from expensive landfill by heat-treating it to produce a gas, which it would then burn to create enough electricity to power 14,000 homes.

It was supposed to open in 2017 but after it did not pass commissioning tests by an agreed date, it was mothballed in 2019.

Earlier this year it was estimated maintenance on the dormant facility had cost £34.5m.

Uncertain future

However the contract said the builder, RSS, had to be compensated over the value of the site.

A spokesperson for the councils said the administrators for Resource Recovery Solutions (RSS) had initially claimed £187m.

"At respective cabinet meetings earlier in July, both councils resolved to accept the settlement, and pay RRS £93.5m to protect council tax-payers from the risk of further significant costs," they said.

"If a sum had not been agreed through negotiation, the dispute would have been resolved through the courts, and formal litigation - a lengthy process with unknown outcomes and additional costs.

"With this settlement, litigation ends, and RRS has no further involvement."

The city council will pay £36.57m and the county council £56.93m, which has already been factored into their respective budgets, the spokesperson added.

In February, both councils agreed to operate the plant themselves.

The previous Conservative city administration said opening it was the "most viable, economic and cost-effective option" but the new Labour leader has said he opposes the plan.