The promoter behind two major energy-from-waste plants in the North East has announced plans to exit the sector.
Pennsylvania-based Air Products told investors it expected to post a pre-tax charge during its second fiscal quarter of up to $1bn (£700M), primarily to write down assets associated with its energy-from-waste business.
The firm said continuation of the 50MW Tees Valley projects, TV1 and TV2, was no longer in the best interests of its shareholders.
Air Products said in a statement today: “In previous public comments, Air Products’ management has communicated the challenges with the Tees Valley projects. Testing and analysis completed during the company’s fiscal second quarter indicated that additional design and operational challenges would require significant time and cost to rectify.
“Consequently, the board of directors has decided that it is no longer in the best interest of the company and its shareholders to continue the Tees Valley projects. Air Products will work to optimise the cash value of its investments. Exiting the energy-from-waste business will allow the company to direct its resources to its core business of industrial gases.”