London Wider Waste Strategy - London - Greater London Authority

4.177. Although market saturation for the main products (biogas and heat) is unlikely to
present difficulties, this may become the case with large scale composting. There is
potential for development of eco-industrial sites if sufficient land is available for linked
industries or a if a plant can be situated near end users requiring gas or heat.
Alternatively electricity can be generated for sale, although this is generally less energy
efficient than direct use of the gas. Disadvantages of biogas facilities include high
establishment costs and potential issues of odours and health and safety.
Recommendation 22: It is recommended that the feasibility of establishing
medium/large scale biogas facilities for the processing of London’s commercial
organic waste should be investigated, including the feasibility of using the
biogas and heat from such facilities in co-located industrial sites.
4.178. London Remade has commissioned feasibility studies for further sites for materials such
as plastics and clinical waste, but any commitment to take these forward would depend
on the availability of funding. The LDA is still funding London Remade to directly assist
with site establishment and development, with the latter’s focus shifting towards
facilitation.
4.179. WRAP is also involved in assisting the establishment of reprocessing sites nationally,
working to overcome the barriers to business development in the sector. WRAP’s
Recycling Fund can provide venture capital (see below), as recycling is a relatively new
industry and traditional sources of business finance can be reluctant to invest in
relatively unproven technologies and markets. WRAP also can assist with business plan
development where there is a strong underlying business proposal, and with
underwriting of recycling equipment resale value through the eQuip Residual Value
Guarantee (RVG) scheme.
4.180. WRAP’s £5.5m Recycling Fund supports SME companies in:
• sorting, reprocessing or recycling of paper, glass, plastic, wood, aggregates or
compostable material (including packaging materials); or
• collection technology insofar as it is specifically designed to enhance the above; or
• the manufacture of products incorporating the above recycled materials.
4.181. The fund is expected to provide equity finance to between 10 and 15 early stage
recycling or waste management SMEs in the UK. Qualifying companies will be those
that can demonstrate an economically sustainable market for their products or materials
but face difficulty in raising commercial equity finance.
4.182. Other barriers to reprocessing include the availability of suitable sites, planning issues
and lack of long-term supply contracts for business waste. The possibility of
competitors (recycling or disposal) establishing nearby is a deterrent to investment in
reprocessing facilities.
4.183. Locally, the LDA is in the process of letting a contract for delivery of a Waste Sector
Business Support Programme, to build on London Remade’s work to date. The key
features of the service, targeted at SMEs, will be:
• Provision of support with marketing and business development.
• Continued support with accessing preferred supplier lists.
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