Even with increased efforts to reduce, reuse and recycle more of our waste, we will still be left with waste that will need managing in other ways to avoid it going to landfill. This waste will need to undergo some kind of treatment.
Derby and Derbyshire Waste Treatment Centre
We have been working jointly with Derby City Council on a project to develop proposals for fixing and operating the Derby and Derbyshire Waste Treatment Centre.
The waste treatment centre was built to include gasification and mechanical biological treatment technology to deal with household waste that Derby and Derbyshire residents either could not or chose not to recycle.
A contract to build and operate the waste treatment centre was brought to an end after the contractor was unable to get the facility up and running. Following extensive work by the 2 councils to determine the condition and capability of the facility, a business case was drawn-up which looked at 2 options: fix and operate the facility, or decommission it and dispose of household waste using a third party.
In February 2023, both councils took decisions by their respective Cabinets to progress the option to fix and operate on the basis that this was the most cost-effective option for Derby and Derbyshire council taxpayers to provide certainty about the future cost of dealing with Derby and Derbyshire's waste.
In May 2026, a procurement process to appoint a contractor to fix and operate the waste treatment centre was brought to an end by Derby City Council and Derbyshire County Council, and no contract was awarded.
Bidders engaged positively with the councils throughout the process to clarify, specify and enhance their proposed solution to fix and operate the existing facility on Sinfin Lane.
While feedback from the process was that the technology at the facility is viable and the facility could be rectified, agreement on the commercial terms of the contract could not be reached and neither bidder submitted a final tender.
A rapid review of future options for the project was carried out by the councils and a report is to be presented to their respective Cabinets on 23 September 2026. The review found that the best option to protect the interests of council tax-payers is to withdraw from the project. This is the recommendation Cabinet Members will be asked to approve along with decommissioning and disposing of the waste treatment centre and seeking alternative longer-term arrangements for the disposal of the city and county's household waste.
Read our latest media release about the recommendation to withdraw from the project.
About the Derby and Derbyshire Waste Treatment Centre (DDWTC)
It is a residual waste treatment facility in Sinfin, Derby which was built on behalf of Derby City Council and Derbyshire County Council as a long-term alternative to landfill. This is a complex project and has suffered a number of setbacks over the years which were out of the councils' control. During the commissioning process, the facility was unable to pass acceptance tests. The facility has been preserved over the past 6 years while steps were taken towards deciding its future.
The decision currently being proposed by the councils
The councils are proposing to formally withdraw from the 'fix and operate' project, decommission and dispose of the facility and make arrangements for the ongoing disposal of Derby and Derbyshire's waste and recycling when the contracts with current providers end, mostly in October 2027.
Why the councils are proposing withdrawing from the project
Following comprehensive business cases, legal settlements, and asset assessments, a procurement process concluded a private-sector partner could not be found that was able to offer a solution for fixing and operating the facility on terms that provided sufficient protection for council tax-payers against potentially significant costs and risks in the future.
Taking this into account, an options review was carried out and concluded that decommissioning the waste treatment centre offers the best overall balance of cost, risk and deliverability.
Continuation of household waste collections
The councils have successfully maintained alternative waste treatment arrangements since 2019. Most of the current waste and recycling contracts end in October 2027. If the recommendation is approved, the councils will secure alternative disposal arrangements to maintain continuous, legally compliant and cost-effective waste management services without causing service disruptions for residents.
Next steps for the site
If the recommendation is approved, the facility will be decommissioned and disposed of in strict compliance with health, safety, and environmental regulations. Equipment will be marketed for resale to help off-set the cost of decommissioning the site and the site will be disposed of.
Overview of project expenditure and decommissioning costs
Total expenditure on the project jointly by Derby City Council and Derbyshire County Council stands at £147.33 million to date. If the withdrawal is approved, the councils will apply to the government to treat this historical spend as capital expenditure in accountancy terms, while the specific costs for decommissioning and disposal will be factored into the councils' medium-term financial plans.
Scope for recovering any of the £93.5 million settlement paid in 2023
The £93.5 million paid to RRS's administrators in July 2023 secured the facility and avoided lengthy, costly court litigation over the contract. As that payment was tied to acquiring the facility and resolving the terminated contract, it cannot be directly refunded, though the site disposal and future procurement strategy are aimed at minimising further financial exposure.