MRF and Anaerobic Digestion Gate Fees Down in UK
Anaerobic Digestion
Gate fees at many Materials Recovery Facilities (MRF) and Anaerobic Digestion (AD) facilities have fallen over the past year, according to the Waste & Resources Action Programme’s (WRAP) fourth annual Gate Fees Report. WRAP interviewed a range of local authorities and MRF operators to gather feedback for this research, which it says highlights that a growing number of local authorities are receiving payment (or being charged zero gate fees) for their recovered materials.
The report found that median gate fees at MRF facilities have fallen to £15 per tonne, or just £4 per tonne for contracts started in 2010 or later, with some reports of negative gate fees at MRFs going as high as £36 per tonne.
Key Findings
Gate fees for similar waste management options vary substantially, both across and within regions. Notwithstanding these variations, the summary information from the survey indicates that:
- Median gate fees for recycling options are substantially lower than those for waste disposal routes
- For organics treatment facilities, open-air windrow (OAW) median gate fees are lower than those for anaerobic digestion (AD) and in-vessel composting (IV); these, in turn, are lower than median gate fees at mechanical biological treatment (MBT) facilities
- The median AD gate fee for separate food waste is lower than the median IV gate fee for food only, but is comparable to the IV gate fee for mixed food and garden waste
- Landfill gate fees including the landfill tax are broadly comparable to gate fees for waste to energy and MBT
Marcus Gover, director of closed loop economy at WRAP, explained that the message in the Gate Fees Report is that there are cost-effective waste management options other than landfill which also deliver greater environmental benefits. “We have seen a substantial decrease in MRF gate fees since the previous report, with some local authorities telling us that they are now receiving revenues of up to £15 to £20 per tonne for their recovered materials, rather than being charged gate fees. This reflects the additional MRF capacity in the market, and buoyant recovered material prices.”
“Another notable change compared with last year’s report is that the median gate fee for AD has dropped considerably — by around £13 per tonne. Indeed, several operators questioned indicated that they felt that AD gate fees might fall further. However, as the AD industry is still relatively young this finding is based on quite a small sample and so does need to be treated with some caution,” Gover added.
Summary Information on Gate Fees
- MRF, all contracts: median £15, range -£36 to £85
- MRF, contracts starting in 2010 or later: median £4, range -£30 to £63
- Open-air windrow: median £24, range £6 to £51
- In-vessel composting (food & garden): median £43, range £29 to £82
- Anaerobic digestion: median £43, range £36 to £64
- Landfill, gate fee only: median £20, range £12 to £55
- Landfill, gate fee plus landfill tax: median £76, range £68 to £111
- Waste to energy, pre-2000 facilities: median £54, range £35 to £79
- Waste to energy, post-2000 facilities: median £73, range £64 to £97
- MBT: median £84, range £57 to £100
Compared with last year’s gate fees report: the cost of disposal to landfill including the landfill tax has increased. Gate fees at MRFs have fallen substantially and many local authorities surveyed are either not paying gate fees or are receiving net revenue for their recovered materials. For AD facilities, the median gate fee is substantially lower by around £13 per tonne. OAW gate fees are little changed, as are IV gate fees for mixed food and garden waste.
Learn More:
Cut Gate Fees With Anaerobic Digestion
UK MRF gate fees have fallen to £15 per tonne and AD fees dropped around £13 per tonne as capacity grew and recovered-material prices stayed buoyant.
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