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Change to CLO requirement
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Premier Waste Management has received noticed from the Environment Agency to a change to their requirements for this material. Previously, CLO not shown to have reached the required temperature was allowed to be used for landfill restoration. Information received today, March 19^th from the Environment Agency indicates that such material must be landfilled. In addition the Environment Agency has drawn our attention to a need to reduce the amount of plastics and glass in the CLO.

We have immediately taken steps to comply with this request and 10,000 tonnes of affected CLO will be removed from Todd Hills and Joint Stocks and moved to the landfill at the Joint Stocks facility.

The Company remains committed to the Parc technology and believe the operational control problems that have lead to this regrettable situation can be quickly and effectively eliminated. We have already embarked upon a major re-engineering programme associated with the Thornley plant which comprises the following key elements:

Installation of a new temperature monitoring system
Installation of a substantial heater phase in the bottom compartment of each tower which will ensure absolute achievement of Animal Products temperature requirements.
The application of insulation to the outer skin of the metal towers to improve heat retention.
The installation of a new trommel screen to improve the CLO segregation stage and reduce physical contaminants. This equipment is actually being delivered today.

Once these works are completed we will be recalibrating and re-commissioning the plant.

We also plan the installation of a further stage of CLO refinement later in the Summer.

We are very confident that these various measures can address the difficulties that the plant has experienced over recent months.

We will be working closely with DEFRA Animal Health and the Environment Agency throughout this period to ensure that they are content with the results of the programme and that we have a clearly agreed basis for future commercial operations of the plant. Once the plant will be back on-line and producing outputs to a standard which is acceptable to our regulators and our clients and which addresses any public concerns about the technology.

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Change to CLO requirement

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