ONE of the contenders to build a waste incinerator for Plymouth has dropped out of the bidding.

SITA UK, which had proposed an 'energy from waste' plant at Devonport's South Yard, pulled out of the project yesterday, to the surprise of campaigners fighting other schemes in the city.

The plant would have burnt domestic waste from Plymouth, Torbay and South Devon, and generated electricity and heat for the yard's owner, the Ministry of Defence.

Two waste firms, offering three possible sites, remain in the running for the £100million scheme. These have been narrowed down from nine initial expressions of interest.

The German waste company MVV Umwelt has proposed incinerators in Ernesettle and Devonport Naval Base's North Yard.

Viridor is focusing on its own site at New England Quarry near Lee Mill. The company has said that it will build there regardless of the outcome of the bidding, and is expected to put in a planning application very soon.

The contract will be awarded at the end of this year.

South West Devon's Conservative MP Gary Streeter, whose constituency includes New England Quarry, said: "I'm disappointed, because South Yard was possibly my favourite option.

"The building would have been hidden by other large buildings in the Dockyard, so it would not have been an eyesore.

"The energy produced could have been used to heat surrounding buildings, and in due course they could have brought in waste by sea from Torbay.

"You have to accept that the odds on New England Quarry are now three to one, and those are odds I don't like."

Luke Pollard, who is Labour's candidate to fight the South West Devon seat at the next General Election, said: "I would encourage Viridor to make the same decision as SITA and withdraw.

"It's clear the local community doesn't want the incinerator.

"If companies are looking at whether this is a credible option, then Viridor should do the same."

Geraldine Lane, chair of STIFLE, the group fighting an Ernesettle incinerator, said: "Our feeling is that they are going down entirely the wrong route in looking at incineration.

"Recently Surrey County Council has dropped its plans for two incinerators, saying that people are reducing their waste and recycling more," she said.

Mark Turner, project director for the South West Devon Waste Partnership, which is commissioning the incinerator, said: "We are naturally disappointed that SITA has had to pull out.

"There are considerable challenges in putting forward proposals of this nature, and unfortunately it has not been possible to achieve a deliverable solution that will meet the needs of the partnership.

"There have been a number of complex commercial issues which could not be resolved."

Paul Gavin, of SITA UK, said: "We are very disappointed. There have been many complex issues to address in relation to the Devonport site and it has not proved possible to reach a way forward that would enable us to continue with the bidding process and deliver the aspirations of all the parties."