Cheap energy scheme to get taxpayers' cash
Published on : 09/04/2009
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An energy scheme which is expected to produce electricity'>cheap electricity and thousands of jobs will be rescued with taxpayers' money.
The treasury stepped in to save the £635 million waste-to-energy project in Greater Manchester.
Originally funded under a private finance initiative (PFI), the development has been put on hold because banks are not willing to part with enough cash to ensure the project can be finished.
When complete the facility will deal with 1.3 million tonnes of household waste and will generate 130MW of energy every year.
Whitehall will throw £120 million at the project.
Criticising the funding model, Liberal Democrat Treasury spokesman Vince Cable told the BBC recently: "PFI has now largely broken down and we are in the ludicrous situation where the government is having to provide the funds for the private finance initiative."
Meanwhile, a huge straw burning facility in Yorkshire has been given the go-ahead despite hundreds of objections.
