RDC defers finance for TERAX waste plant
12 February 2014
At a meeting of Rotorua District Council's Operations & Monitoring Committee today [Wednesday 12 February] councillors deferred approval of $3 million required for a professional services contract to construct the new TERAX demonstration plant for recycling bio-solid waste from the city's wastewater treatment plant.
The decision puts funding approval on hold while an investigation can be undertaken into comparative costs of the TERAX project compared to other technologies.
The council had previously made an interim commitment of $800,000 as partial approval of the project until detailed costings could be prepared and the business case reviewed by the project's governance group. Central government has acknowledged the potential of the programme by granting the council $4.7 million for the project and for further research through a Ministry for the Environment fund.
The Operations & Monitoring Committee heard from council officers that designs had now been completed and detailed costings showed an additional sum of $2.2 million would be required to undertake construction of the plant.
Committee chair Councillor Janet Wepa said the project's governance group had carried out a comprehensive review of the business case.
While that review reaffirms the compelling business proposition, it makes sense to take time out to review comparative costs before we finally make a decision to approve a professional services contract so the project can proceed.
This programme is first and foremost an investment in future-proofing our community and taking strategic action to protect the environment for the long-term.
Disposal of waste from treatment plants has long been problematic for councils. This project provides a long-term sustainable solution for safely disposing of large volumes of hazardous waste for our district.
The new plant, using innovative technology developed by scientists from Scion, will change things in the future. It will recycle all the carbon, nutrients and energy in the waste stream and make them inert and safe. In the long-term that waste can be transformed into useful by-products which could potentially provide a financial return.
It is also hoped that through our business partnership with Scion there may be interest around New Zealand or even overseas in purchasing the new TERAX technology for other cities.