East Riding of Yorkshire Council and Hull City Council announced that, due to the effects of the financial downturn, the PFI route was no longer an option, despite the current availability of credits from the Government.

The councils remain committed to an energy-from-waste facility, but unpopular plans for an incinerator in Saltend appear to have been scrapped.

John Skidmore, director of waste across the two authorities, said the global banking crisis had resulted in many lenders pulling out of the PFI market, while those left were charging ‘considerably’ higher rates of interest.

‘These difficulties, taken together, mean that this method of financing, even with the PFI credits currently available from the Government is unaffordable,’ he said.

The plans were part of the councils’ joint sustainable waste-management strategy, and contractor, Waste Recycling Group, is now reviewing funding options available to deliver an energy-from-waste plant.

Mr Skidmore added: ‘Our joint waste strategy is based on recycling 45% and diverting the remaining waste from landfill to an energy-from-waste facility. Our commitment to keeping waste out of landfill, in line with national policy, remains as firm as ever.

‘Both councils are making significant investments in recycling and composting facilities to ensure we are delivering an infrastructure which enables our residents to reduce the waste they create, and recycle or compost what is left.’

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