The European Commission has given permission for the UK Government to give state aid to Energy Works (Hull) to develop an energy from waste facility.
It has concluded that plans to grant £19.9 million to the company by the Government for the gasification plant in Hull meets European Union state aid rules.
The facility will generate 25MW of electricity from 190,000 tonnes of waste.
As Energy Works holds a near insignificant share in the UK electricity market, the European Commission concluded that state aid in this case isn’t likely to distort competition.
It found that the aid, funded through the European Regional Development Fund will reduce greenhouse gas emissions by using biodegradable waste to produce electricity and by diverting waste from landfill. It also met EU objectives in terms of contributing to the security and diversification of energy supply.
European Commission vice president in charge of competition policy Joaquin Almunia said: “This plant will produce electricity from partially biodegradable waste without unduly distorting competition in the internal market. This will allow the UK to diversify its electricity sources and at the same time reduce greenhouse gas emissions.”
The facility will be powered by waste wood and the biodegradable fraction of commercial and industrial solid waste.