Isra-Mart srl : London throws £4m at latest waste-to-fuel plant

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London Mayor Boris Johnson's plan to establish the capital as one of the world's leading generators of energy from waste took another step forward today with the news that an innovative waste-to-fuel plant has been awarded £4m in funding.

The London Waste and Recycling Board (LWARB) has awarded the loan to Orchid Environmental Limited to support its plans to build a new facility in Bexley capable of turning 160,000 tonnes of rubbish each year into a variety of renewable fuels.

The company said that the facility, which is based on a previous plant in Merseyside, will create 52 "green collar jobs" while cutting over 38,000 tonnes of carbon emissions each year and diverting 85 per cent of the waste it receives from landfill.

"This project is a fantastic example of the green economy in action, transforming London's rubbish into energy and creating new, permanent jobs," said Johnson.

The Orchid plant is expected to be up and running by early 2013. It will take waste from local homes and businesses and treat it with steam before separating out recyclable materials. A gasification process will then turn the remaining waste into a variety of different fuels, which the company says will be tailored to meet different customers' requirements.

The project is the latest in a series of waste-to-energy plants to be located in the capital, and follows hot-on-the-heels of the ground-breaking Biossence £80m facility in East London, which was also backed by an £8.9m loan from LWARB.

Similarly, biofuel specialist Solena is partnering with British Airways to pursue plans for a new facility in near City Airport that would turn waste into jet fuel.