The Technology and Construction Court has ruled the primary activity carried out at the Energy Works Hull facility is power generation rather than waste treatment.
The judgement follows a legal dispute about construction between MW High Tech Projects UK, the designer and manufacturer of the plant, and sub-contractor Engie Fabricom (UK). Fabricom was engaged by M+W to carry out the installation of the plant.
The Energy Works plant in Hull
Fabricom had been awarded £367,723.85 plus VAT by an adjudicator.
Under the Housing Grants, Construction and Regeneration Act 1996, many construction disputes have a right to adjudication. Disputes about power generation do not have this right.
MW argued its sub-contract was for the installation of plant on a site where the primary activity was power generation, and therefore Fabricom’s claims had no right to adjudication. It challenged Fabricom’s claims at the High Court.
Mrs Justice O’Farrell said: “The primary activity on the site is power generation.”
In a decision handed down on 25 June, she ruled the adjudicator did not have jurisdiction over the dispute and Fabricom’s claims were dismissed.
MW and Fabricom were approached for comment.
Fluidised bed
Mrs Justice O’Farrell said Energy Works Hull was a fluidised bed gasification facility. The gasification or incineration process uses refuse derived fuel (RDF) to produce steam.
“The primary activity on the site is power generation”
Planning application documents identify the project as both a waste management facility and a plant for the generation of renewable energy.
Once operational, the energy from waste plant is expected to process 240,000 tonnes per year of RDF, using gasification to convert it to energy. The electricity produced is for export to the National Grid.
The performance of the plant is measured by reference to heat and energy production, rather than waste throughput, Mrs Justice O’Farrell said. She said the facility’s overriding contractual requirement is to operate as a power plant.
She noted the funding model for the facility estimated most of the revenue would be generated by electricity exports to the National Grid and through subsidies and grants.
Hull
The development of the Energy Works Hull has seen some difficulties, with engineering firm Black & Veatch appointed in April 2019 to oversee the completion of the facility (see letsrecycle.com story).
The move came after the facility’s developers terminated the engineering, procurement and construction contract with MW in March 2019, citing significant delays (see letsrecycle.com story).
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Source: letsrecycle.com Waste Managment
