Council / Landfill extension project could cost £6.6m
THE CONSTRUCTION of a new third phase of the Gremista landfill site in Lerwick could cost more than £5 million.
A business justification case on the project is due to go in front of councillors for the first time next week.
An expansion is needed because it is expected that the landfill site, where waste which cannot be recycled or incinerated is buried, will reach capacity in 2027.
The business justification case estimates that construction work on a third phase of landfill could cost £5.7 million.
Add in design and management fees, as well as capping the phase two area, and the total cost of the project could rise to £6.575 million.
This would be funded by external borrowing, with fees at the site potentially going up to offset costs.
The business case says a third phase would provide around 17,000 square metres of capacity, which could last for 15 years.
At the moment the landfill site takes in an average of 16,740 tonnes of waste every year.
The business case said this comprises of construction waste, fish farm waste, sewage sludge from the water treatment plant, amongst other types.
The landfill site is also licensed to accept bonded asbestos which is said to be of “massive benefit” to the local construction industry.
For 2025/26 the cost of disposing a tonne of waste in landfill will be around £204.
It is proposed that a charging impact assessment and review is undertaken to ensure that future fees “remain affordable to the local community while producing additional income to contribute to the cost of this project”.
The report also said there is an expectation that additional offshore waste will bring in more money in future years.
It is said that another benefit of the project is that the SIC will able to continue storing waste destined for the nearby Energy Recovery Plant, where rubbish is burned. Waste heat from this process is used for the Lerwick district heating system.
The business case added: “It should be noted that although the Scottish Government are aiming to drastically reduce the amount of waste going to landfill over the next 10-15 years, this is likely to be a very gradual change.
“The need for a landfill in Shetland would still be essential over this next period as detailed in the following sections.”
Without a landfill site waste would have to be shipped south, and this would come at an estimated cost of around £3.3 million a year.
But capacity on the NorthLink ferry service would also be an issue.
Councillors will be asked to approve the proposals for inclusion in the SIC’s asset investment plan for 2025-30.
The report will first go in front of the policy and resources committee on Monday before heading to the full council on 26 March.
In light of the landfill being set to reach capacity in 2027, consultants Mott MacDonald are already carrying out design work.
It is expected that the project could go out to tender later this year.
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