Extra £1.3 million to be spent on Ludlow biochar scheme as budget increase approved

The authority’s planning application for the pyrolysis plant was approved in January. But at a full council meeting on Thursday (July 17), members were asked to set aside more money to complete the development.

It means the total budget has now gone from £2m to £3.3m.

The increase, say the council, is due to a number of reasons. This includes issues with preparation work for the site itself, as well as increased construction and machinery costs, and “additional demand for external technical expertise”.

The site, on Coder Road business park, was previously home to an anerobic digester and needs clearing and preparing for the new development.

The new plant will process biochar – a form of charcoal – and is aimed at helping Shropshire Council achieve its climate change targets. The renewable energy and biochar that is produced can be sold for many uses in agriculture, construction and industry.

A paper delivered to council shows that the project will return a total of £466,557.32 within six years, with the full £3.3m expenditure repaired by the 20th year of operation.

“I have criticised this council for many years of not investing to save,” said Councillor Roger Evans, portfolio holder for finance.

“This is a good investment. It pays for itself within six years, and we’re getting hundreds of thousands of pounds during that time.

“This council needs to invest, whether it’s borrowed or using its own capital, as long as there is a profit in it. This shows there is.”

However, Councillor Dawn Husemann, the opposition leader for Reform UK, said members hadn’t been given sufficient information to make a decision.

“We have not been given the full business case to justify the enormous loan being sought,” said Cllr Husmann.

“If I walked into a bank with what I have been given and asked them to decide whether to lend me £1.3m on top of the £2m already agreed, I’d be chased out of their offices.

“We are in a very precarious financial position, as we keep being reminded by the new administration. Well in my world, you don’t borrow money to go on holiday if you can’t pay your rent.”

Two of the tree Ludlow councillors were also against the scheme.

Councillor Viv Parry (Ludlow South) said rats and flies were seen at the previous plant, with smells emanating.

“We know this is completely different, but there are still people on Parys Road who are worried about the traffic that it is going to involve,” said Cllr Parry.

“I’ve already spoken to [street lighting and traffic signs coordinator] Jason Hughes about alerting the traffic situation at the end of Parys Road, which is desperately needed. This is a cut-through to the rest of the town.

“We’re going to have these lorries coming down day in, day out.”

Fellow Liberal Democrat, Councillor Beverley Waite (Ludlow East) also objected, saying she could only support it if it was not by a housing estate.

However, Councillor Andy Boddington (Ludlow North), who is also a Lib Dem member, said he fully supports it.

“We did have problems with the biodigester, but a lot of it was down to how it was managed,” he said.

“This is a completely different concept and is going to be fed wood. That is a crucial thing because there’s not going to be any wet waste, so there won’t be any problems with any pests.

“The traffic movements don’t concern me. It’s estimated 300 truck loads a year – there are 400 to 500 vehicles a day along Parys Road, and it is used by 40 to 44-tonne trucks regularly.”

A total of 53 councillors backed the budget increase, with 15 against and three abstaining.