5:44 pm today

Firm behind controversial plan to build energy plant in Waimate no longer owns the land

5:44 pm today
An artist's concept  for a waste-to-energy plant proposed to be built at Waimate by South Island Resource Recovery Limited.

An artist's concept for a waste-to-energy plant that was proposed to be built at Waimate by South Island Resource Recovery Limited. Photo: Supplied/ SIRRL

A land deal as part of a controversial waste-to-energy plant proposal in South Canterbury has fallen over.

Last year, South Island Resource Recovery Limited (SIRRL) was granted consent by the Overseas Investment Office to buy 15 hectares of farmland near Waimate for the scheme.

The plant was slated to truck in 365,000 tonnes of non-recyclable waste to the town of Waimate annually.

The rubbish would then be incinerated by the plant, producing electricity and toxic ash.

It was one of the government's chosen 149 projects to go into the Fast-track Approvals Bill last October.

The bid, named Project Kea, has been met with fierce criticism by local residents.

In a statement on Tuesday, company director Paul Taylor confirmed the sales and purchase agreement to purchase land from Murphy Farms "lapsed at the end of last year".

Bruce Murphy, of Murphy Farms Ltd, said it had not renewed its agreement with SIRRL.

"Due to the delays resulting from changes made to the consenting process through the introduction of the Fast-track Approvals Act, the project is not meeting Murphy Farms' future plans for growth."

In the interim, SIRRL would focus on lodging an application with the fast-track panel.

"They will assess our application and judge it on its merits," Taylor said.

Soon after the application was lodged, the company, Waimate District Council and Canterbury Regional Council asked then Environment Minister David Parker to "call in" the project because of how unique it was.

Parker at the time agreed the application was of national significance and directed the Environmental Protection Authority to take over the consent process.

Environmental group Zero Waste Network said it was "thrilled" that the project was not going ahead.

General manager Dorte Wray said the Waimate community and local iwi had worked tirelessly to ensure that the "toxic project never sees the light of day".

"This incinerator project has no social license to operate. It would never get resource consent under normal conditions given its widespread air pollution and climate impacts.

"The project was included on the fast-track list meaning that community concerns, human health and environmental considerations would all have been disregarded in favour of the company's claimed economic benefits."

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