The company behind the Barry Biomass incinerator has confirmed that it’s pulling out of investments in Barry.

Aviva said it has made the decision to ‘divest from the assets’ and this was not a decision ‘taken lightly.’

On Aviva’s website they have said the reasoning behind plant closure.

“We commissioned an independent review of these assets earlier this year, which assessed their performance, ongoing risks, and future potential for the plants.

“Following this review and informing investors of the situation, the decision was taken to divest from the assets.”

Interests surrounding investors also seemed to be a factor Aviva had taken in consideration.

Aviva explained: “We believe it to be in the best interests of the investors in this fund, given the ongoing cost that would be required to maintain the plants, and to reach operational efficiency.”

The initial statement read: “Aviva Investors entered the Energy from Waste (EfW) and Biomass sectors in 2015 with the ambition of supporting alternative energy creation whilst contributing to long-term investment performance.

“The 2015 Biomass investments comprise three 10 MW gasification projects at Hull, Barry, and Boston.

Unfortunately for the company operation targets weren’t fulfilled.

Aviva said: “Since the original investment, it has become apparent that the gasification technologies at these plants have significant challenges in their current form.

 This is not an issue specific to the assets in Aviva Investors’ portfolio, with other energy from waste plants using similar technologies having also failed to reach operational capacity, or operate as expected after extended periods of development, with some being abandoned as a result.”

The company explained financial costs were also considered.

Aviva said: “Given the ongoing cost that would be required to maintain the plants, and to reach operational efficiency it is important to point out that these assets sit within a much larger diversified fund.

“We continue to engage with stakeholders, including investors in the fund, to keep them informed of the next stages in the process.”

Speculation into the plants closure began last week after Plant operators Evero pulled their staff from Barry just leaving cleaning and security workers.

Evero announced the move in a short statement to ENDS Waste and Bioenergy: “We can confirm that, unfortunately, colleagues at three sites where we provide O&M services have been placed at risk of redundancy."

Luke Walsh whose been reporting on this issue said: “Last year Aviva lost about £100m when its Newport EfW plant went into administration it is now becoming clear the facilities in Barry, Hull and Boston are heading the same way as Newport, with similar levels of losses for each facility.

 “Barry has a complicated planning history where obvious mistakes have been made by the local council, Welsh Government and mainly Aviva.”

He added: “Aviva also has other investments in Plymouth and Hooton which are also struggling and could well follow the other three if they do go bust.”

“Residents are angry that this project has got to where it is - they feel ignored and let down. It represents just another example of Government, at various levels, acting over the head of the local populations

 “Welsh Government should now end this whole sorry saga by refusing the plans and removing the cloud that has long been over this development.”   

Aviva has been contacted for furthers comments regarding this.