2.22 To date there have been limited markets for products from the waste treatment process, particularly mechanical biological treatment. These products include solid recovered fuel (SRF) and compost-like materials. Potential sales of these products provide opportunities for contractors to generate revenue, which may reduce the price of the project to the authority. Energy companies are potential purchasers of products. Producing energy from waste is however subject to various regulations and also competition from overseas companies. Some authorities have had to develop alternative strategies for disposing of the products, including sending them to landfill (see Case Example 2).
2.23 The Department recommends that local authorities do not rely on sales of products to fulfil either affordability or landfill diversion requirements. Energy from waste incineration is currently likely to be more affordable to local authorities, but is unpopular with local residents, increasing the risk of delays to obtaining planning permission.
2.24 There are also markets for materials recycled from waste. Contractors often have the opportunity to derive income from selling recyclable materials. Market rates for recyclable materials such as plastic and metal have increased substantially in recent years. Some authorities have contracts which have not entitled them to benefit from this increase in the rates for recycled materials. The Department is encouraging recycling and now expects local authorities to provide for revenue sharing in their contracts.