BUILDING work will start on a controversial incinerator plant near York next month, and the facility could be up and running in just 36 months.

New investors have come forward for the Allerton Waste Recovery Plant (AWRP) – a joint project between City of York and North Yorkshire County Councils – and the two councils have signed the final contract for the design, build and operation of the site.

The plant, near the A59/ A1(M) junction at Allerton Park, was granted planning permission in October 2012, but looked under threat when DEFRA cancelled funding deals worth £65 million just months later.

But now the £319 million scheme – which has been hugely unpopular with green campaigners and many local residents – has won new investment from the UK Green Investment Bank (GIB) which has put £33 million into the scheme, and other backing has come from Aberdeen UK Infrastructure Partners and Equitix, meaning the plans are back in track.

GIB’s chief executive Shaun Kingsbury said: “This innovative project is a best-in-class example of how local authorities can improve recycling and generate significant amounts of renewable power from household waste. GIB is proud of its track record supporting innovation in the waste and recycling sector and particularly pleased that this impressive facility is the first to feature the full complement of waste treatments and new technologies.”

The company behind the plan, AmeyCespa, claim it will create 400 building jobs and another 70 jobs once the plant is up and running.

Once complete, it is expected to process 320,000 tonnes of household and some commercial waste each year, and generate 203 GWh of electricity per year, enough to power 40,000 households.