Materials Recycling Facility (MRF) – Upgrade Investment Due Diligence

Luton Council faced a strategic decision regarding a council-owned Material Recovery Facility (MRF) asset that had been recently damaged by fire. The council needed a robust assessment to support an investment and strategic decision on the future of the facility, including an evaluation of cost and environmental outcomes of potential options. Three potential redevelopment options were considered:

1. Reinstating the existing in-house MRF.
2. Developing a high-specification in-house MRF.
3. Repurposing the facility as a waste transfer station while leveraging existing merchant MRF capacity.

The council required a thorough analysis of capital and operational costs, long-term financial implications, and environmental recycling metrics to ensure value-for-money and inform the decision on the future utilisation of the site.

WRM developed a comprehensive techno-economic model to evaluate each redevelopment option. The model incorporated:

• Capital expenditure and operational cost projections.
• Lifecycle performance assessments for each scenario.
• Long-term financial implications over a 10-year period.
• Comparative analysis to identify the most cost-effective option from the council’s perspective.

The assessment not only quantified potential financial savings but also provided strategic insights into the design and scope of future waste processing procurement, helping the council make evidence-based investment decisions.

The analysis identified potential cost savings exceeding £10 million over a 10-year contract term. The model provided a robust, evidence-based framework that enabled the council to:

• Make a strategically informed investment decision.
• Ensure optimal use of council resources.
• Understand the business case and steer the future procurement and operational strategy for the management of dry mixed recyclables.

“WRM provided us with a clear, evidence‑based analysis that helped us confidently assess the future of our MRF site. Their modelling gave us a thorough understanding of the financial and environmental implications of each option, enabling us to make a strategically informed decision. The support was precise, insightful and valuable for shaping our long‑term waste management strategy.”

Steve Lawson – Waste Contract Manager, Luton Borough Council