The firm behind the new Baldovie incinerator project in Dundee — which was to provide steam to the Michelin factory — expects to be financially compensated if the tyre company closes its city site.
Earlier this month MVV Environment Baldovie Limited, which is behind the £100 million energy from waste combined heat and power facility, said construction work on the steam pipeline to the neighbouring Michelin factory would continue.
Their recently filed annual accounts reveal they will not take an impairment charge on the pipeline due to the compensation expected if Michelin closes.
The accounts state: “Michelin have announced the proposed closure of their plant in Baldovie. MVV has invested in a pipeline to supply the Michelin plant with steam.
“This pipeline will, possibly, not now be used in the future.
“At this point the directors are of the opinion that an impairment of this asset is not necessary because the closure of the plant is likely to result in financial compensation that exceeds the value of the asset.”
Michelin declined to comment on the claim.
As well as constructing the new facility, MVV runs the existing incinerator at Baldovie.
The firm’s accounts, for the year ending December 31, show an increase in turnover from £9m to £10m and a smaller pre-tax loss of £388,000 compared to £513,000 in 2016.
Last year, the firm incinerated 81,272 tonnes of waste and sold 39,794 MWh of power.
The new facility, which is due to be finished by the end of next year, will process around 110,000 tonnes of waste a year.
rmclaren@thecourier.co.uk
