"This facility, which we believe will be the first of many, is one of the most innovative solutions available for dealing with the increasing waste headache"
William Thompson, Director of Graphite Resources Limited
London: Graphite Resources Limited has reached financial close on its £50 million Derwenthaugh Ecoparc in Tyne and Wear. The Derwenthaugh site extends to over 2 Ha and is situated on the banks of the River Tyne between the A1 and the well known retail park, the Metro Centre.
Pinsent Masons’ advised Graphite on the construction aspects of the project, which included developing an innovative contractual structure to obtain maximum value for money.
There has been some delay since planning permission was granted by Gateshead council in 2005, which it is thought is related to the problem of putting finance into place.
The facility is understood to have no advanced contracts for municipal waste with local authorities, and is one of the first of a new breed of merchant waste facilities where debt funding has been raised despite of this. Debt-funding has been provided by Allied Irish Bank and Alliance & Leicester, according to Pincent Masons.
With an overall capacity of 420,000 tonnes per annum. the Ecoparc will have the world's largest steam autoclave recycling plant using cutting-edge technology to treat and recycle waste.
The EcoParc has four operational components comprising waste reception; a steam treatment and separation plant; a light waste line and despatch; and a green waste and transfer station.
The building will have the latest UV odour treatment technology and be held at a negative pressure to prevent the release of any odour or litter.
As the merchant facilities can be delivered quickly, local authorities may see this as part of the solution to help them reach their LATS targets and avoid fines, according to Pincent Masons.
The autoclave is the main processing facility at the Ecoparc and is capable of handling 320,000 tonnes of municipal and commercial waste each year. The balance is made up of 50,000 tonnes of light waste (segregated municipal, commercial and industrial waste) together with 60,000 tonnes of green waste and skip waste.
Steam autoclaves will reduce the volume of waste by 80 per cent with material outputs ready to be recycled or sent to other re-processing plants.
Pinsent Masons lead partner, Dean Larder, said:
"Graphite is an ambitious and innovative company that has recognised a place in the market for merchant waste facilities alongside waste PFI Projects."
“Our experience as a leading adviser in the waste sector proved vital in enabling us to understand and resolve the complex issues that arose on this project. It’s been challenging and rewarding, and we have enjoyed working closely with Graphite's team who were pragmatic and collaborative in their approach."
William Thompson, Director of Graphite Resources Limited, said:
“Environmentally-friendly and cost-effective alternatives to landfill and incineration are urgently needed. This facility, which we believe will be the first of many, is one of the most innovative solutions available for dealing with the increasing waste headache. Not only will it increase recycling and landfill diversion, but it provides a practical and economical solution to local authorities and companies who are under increasing pressure to cut down on landfill waste and to minimise their environmental impact. Pinsent Masons is a key part of the Graphite team and played a lead role in the successful close of this project.”
Further information
Pinsent Mason
Pinsent Masons is an international law firm with over 290 partners and more than 1000 lawyers who provide a full range of corporate and commercial services. The firm ranks amongst the top 100 global law firms, according to the organisation.
For regulatory information please visit: www.pinsentmasons.com
Graphite Resources Limited
Graphite Resources was established by brothers William and Michael Thompson in April 2003 and were joined by Richard Mair in 2005 with the aim of changing the way that waste is managed.
The company says that its flagship recycling plant, Derwenthaugh Ecoparc, will act as the blueprint for future Graphite Resources sites going forwards. Several more sites are planned by Graphite during the next five years. In addition, the company aims to develop a renewable energy arm and a recycled product manufacturing capability at future sites.
Graphite Resources will be headed as Chairman by former Secretary of State for the Environment, Lord Kenneth Baker.
For more information visit www.graphiteresources.com .