Peel agrees power station JV with Covanta

US group Covanta Energy is to form a joint venture with Peel Environmental to run the £500m waste-powered incinerator at Ince Marshes in Cheshire.

The waste recovery plant will be built next to Shell's Stanlow oil refinery, Quinn Glass and Kemira on former farmland on the south bank of the Manchester Ship Canal.

The joint venture, Ince Park LLP, will build, own and operate the heat and electricity station.

The controversial new facility was opposed by residents, MPs and the local authority during planning. Peel was granted consent following public inquiries and previous planning rejections. The plant will handle domestic and business waste which cannot be sensibly recycled, the company said.

Construction of the facility is expected to start in 2011. Myles Kitcher, director of Peel Environmental, said: "This means that we are looking at several hundred construction jobs over a three-year period in addition to creating more than 1,000 full time jobs across the full Ince site. Jobs we promised during the planning process will now become a reality."

Peel Environmental and New York-listed Covanta will jointly market the remainder of the 126-acre site to organisations in the waste and environmental sectors. The deep-water berths on the Manchester Ship Canal could be used to transport goods to and from the park, which also has rail and motorway connections.

About 50 acres of the site has already been earmarked for extensive landscaping and a nature reserve.

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