Plans for a £20m facility for turning plastic waste into hydrogen in Clydebank have been dropped by the developer.
Peel NRE was given approval to build an incinerator at Rothesay Dock by West Dunbartonshire Council in June, but the company confirmed yesterday that it has withdrawn the application.
It said a moratorium on the construction of new waste-to-energy incinerators announced by the Scottish Government in June was "one of the key drivers" behind its decision.
Richard Barker, development director at Peel NRE, said: "The current moratorium on thermal treatment facilities in Scotland creates a negative environment that risks stifling this innovation in the sustainable management of waste and was one of the key drivers in our decision to withdraw the application.
"Our plans for north Clyde would have provided much needed infrastructure for processing plastics that can't be recycled, creating a local source of hydrogen that could be used as an alternative clean fuel for HGVs, buses and cars.
"This could have helped contribute to the Scottish Government's mission to decarbonise our communities and economies to reach net zero."
The government's decision earlier this year was reached following an independent review of incineration commissioned by Scottish Greens co-leader Lorna Slater.
Scottish Greens MSP for west Scotland Ross Greer said: “This is a significant win for the local community, who campaigned brilliantly against these deeply unwelcome plans.
“It is also proof that the Scottish Government’s new policy of not supporting new incinerators, delivered by the Scottish Greens, is already having a positive impact on our climate.“
He continued: “There is nothing green about burning plastic to produce hydrogen, it is an unproven, expensive and deeply questionable process.
“Scotland is on a clear journey to protect our communities, our environment and our climate, and this welcome news should send a clear signal to any other companies seeking to keep us dependent on dirty fossil fuels.”
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