A MULTI-million pound scheme to provide power to Bolton homes by burning rubbish is set to start next year after receiving financial backing.

The Greater Manchester Waste Ltd project at Raikes Lane incinerator is expected to be operating by mid-1997.

GM Waste's managing director Steve Jenkinson said the £12 million needed to fund the project will be provided by a finance house which does not wish to be identified.

He said the incinerator will be improved and made greener than ever and provide energy for Bolton residents and businesses and a community heating scheme.

The company is confident the scheme will get through the planning system in time to meet tighter EC limits on emissions from municipal solid waste incinerators.

State of the art flue gas cleaning equipment will be installed to reduce emissions of acid gases, heavy metals and deadly dioxins.

Some of the existing equipment will be replaced by a heat recovery steam generator. Bolton's household waste will be burned at a rate of 40 tonnes an hour at high temperatures. The electricity generated will go on the national grid to be used in local homes. Mr Jenkinson said: "This is an exciting scheme which is good news for Bolton. It is a renewable energy source which reduces the need for the more expensive option of landfill disposal and reduces the consumption of fossil fuels."

But Bolton Friends of the Earth campaigner Dennis Watson will object over pollution and claims it is an inefficient method of producing energy.

He said: "Far from being good for the environment, energy from waste is a waste of energy. Studies have shown it uses up 40 times more energy than recycling when you are talking about plastics.

"As far as pollution is concerned, I am not confident that the EC standards will be maintained because the company will do their own monitoring and will be able to choose the time and the conditions to carry out the checks.

"It certainly does not legislate for the incinerator breaking down and, even if standards were maintained, any addition to dioxin in the atmosphere would be too great if the level is already high."

Mr Jenkinson added: "To get authorisation both the Government and the EC have specified a level we have to work to and I am happy to say we will work to that."

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