London based waste and recycling firm, Powerday, has commenced a new contract with Northern European waste to energy company, Geminor, for the export of 170,000 tonnes of Refuse Derived Fuel (RDF) to Sweden.
The company produces RDF at its Old Oak Sidings and Enfield Materials Recycling Facilities and then loads them for transfer.
Under the contract with Geminor, the material is taken to Sheerness Port then by utilising ‘dead leg’ sea freight return journeys the material is shipped to Oxelösund Port in East Sweden.
It is then supplied as needed to the Hogdalen waste to energy facility in Stockholm, Sweden operated by Fortum which produces 91 MW of energy. Powerday will supply approximately 30% of its fuel.
Powerday has been working with Geminor since 2015 and has carried out extensive testing which included a trial of 8000 tonnes through the summer of 2016.
However, the company’s chairman, Mick Crossan and sales & marketing director, Simon Little travelled to Stockholm last October to see the final stages of the trial and meet with the stakeholders in Stockholm who then returned to London to understand the fuel production process.
The resulting deal comes as the landfill tax charge in England was raised to £86.10 on 1st April 2017 and will rise again next year to £88.95. According to Powerday, along with the landfill operators’ fees and transport costs, this has driven disposal costs over recent years to levels in excess of £110 per tonne.
The company explained that this in turn has created the environment where waste management firms have invested in recycling capability to both recycle materials from mixed waste streams and create renewable fuels from the residues of this process, materials that would otherwise be lost to expensive landfill sites.
“The size and scope of this project is incredibly exciting for Geminor,” commented James Maiden, country manager at Geminor UK. “Refined RDF is so-called because it is processed to a greater extent, creating a cleaner fuel with less residues.”
“This contract helps Powerday to deliver long term sustainable end markets for their clients and represents a significant contract for Geminor,” he concluded.
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