Residual Waste Update
Perth and Kinross Council · 26 August 2026
Back to Finance and Resources Committee — 26 August 2026 and its agenda
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Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Finance and Resources Committee Date of Meeting: 26 August 2026 Report Title: Residual Waste Update Report Number: 26/225 Report Author: Pete Leonard, Climate Change and Zero Waste Manager Organisational Lead: Fraser Crofts, Strategic Lead - Environment and Infrastructure ___________________________________________________________________ 1. Purpose 1.1 The purpose of this Report is to update the Committee on the latest situation regarding the Council’s residual waste disposal arrangements and to signal potential next steps. 1.2 Sections 1. Purpose 2. Recommendation(s) 3. Background/Context 4. Main Issues 5 Proposals 6 Conclusion 7. Impact and Value Assessment 8. Appendices 2. Recommendation(s) It is recommended that the Committee: 2.1 Notes the update, and; 2.2 Notes that further updates will be made via the Member Briefing process as and when required.
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3. Background/Context 3.1 During the latter stages of 2025 it became clear that Paprec Energies Binn, the Council’s contractor for residual waste treatment and disposal, would not be able to meet the requirements of the Scottish Government’s ban on landfilling biodegradable municipal waste (the bio ban), which was due to come into force on 1 January 2026. In the main, this is because the contractor was unable to complete the build of an energy from waste plant that they were relying on and could not find reliably compliant alternative outlets for PKC waste. 3.2 The contract was terminated on a mutual basis, and a new short-term contract was awarded to Cireco (Scotland) LLP on an emergency basis. This contract came into effect on 1 February 2026 and is for a period of 18 months, with an option to extend by a further 12 months. 3.3 This matter was considered and approved at the Finance and Resources Committee on 4 February 2026. At the meeting, a commitment was given to provide an update on residual waste disposal arrangements to the F&R Committee before the summer recess. 4. Main Issues 4.1 The transition from one contract to another was carried out seamlessly from both a contractual and operational perspective. Despite the difficult circumstances, positive relationships have been maintained between the various parties. The new contractor is performing well and has facilitated several approaches to assist PKC to reduce costs but still within the parameters of the contract terms. 4.2 A notable benefit we are experiencing is one of business continuity and resilience as the new contractor has taken on all risks associated with processing plant downtime. This provides a high degree of certainty that PKC’s operational requirements and statutory responsibilities will be met. This is a significant consideration given the well documented issues with processing capacity at a national level. 4.3 With regard to the Binn Farm Energy from Waste (EfW) project, the termination of the Council’s contract with Paprec Energies Binn Limited (now known as Paprec Energies Glenfarg Limited) precipitated the formal dissolution of the Special Purpose Vehicle. Paprec Energies now owns 100% of the EfW project. Binn Group has advised that they have an option to take over the project should Paprec Energies withdraw. 4.4 Paprec Energies is currently reassessing the viability of the project, and they anticipate that this process will be completed by September. PKC officers continue to meet regularly with representatives of Paprec Energies and Binn Group to maintain an awareness of progress.
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4.5 Clearly, there is still a degree of uncertainty regarding the project. In terms of timelines, the best-case scenario would see a facility being commissioned and operational in 2031 or 2032. 4.6 PKC’s current residual contract will expire long before then, and so the process of procuring a longer-term residual waste contract will need to be initiated soon. However, it would be helpful to have a clearer understanding of the situation with the Binn Farm project before commencing a procurement process. We have sufficient time to wait until late 2026. 5 Proposals 5.1 It is proposed to hold a watching brief on the Binn Farm EfW project to see how feasibility and project planning progresses, before commencing the process for procuring a new residual waste contract later in 2026. 5.2 A further benefit of delaying the procurement is that some 535,000 tonnes of new waste treatment capacity in Scotland is due to be operational by the summer of 2027. Entering the market when this additional capacity is available may see greater competition for PKC business. 5.3 A further update can be provided to Members as the procurement strategy is developed. 6 Conclusion 6.1 The situation regarding the Binn Farm Energy from Waste project remains unclear. This paper sets out the process which officers intend to follow to navigate the uncertainty and ensure that compliant, longer-term residual waste treatment arrangements are procured. 7. Impact and Value Assessment N/A – No substantive decision requested of Committee. 8. Appendices None