Plasco lays off 12 workers from Trail Road facility

Ottawa waste management company Plasco has laid off a dozen workers, amidquestions about whether it has the money to fulfill its contract with the city.

CBC News has learned 12 workers were let go earlier this week from Plascos demonstration plant on Trail Road. The company still employs110 people.

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Plasco vice president of public affairs Edmond Chiasson said these workers are no longer needed since the plant is changing from a "demonstration facility"to a "technology development facility."

"This week we decided for the new role of the Trail Road facility, we didnt need as many people working there,"he said.

The Trail Road plant has experienced frequent breakdowns during its demonstration phase, breakdowns that have raised doubts about its ability to handle the citys waste.

Plasco has until Dec. 31 to prove to the city it has the money to build a plant capable of processing 150,000 tonnes of garbage a year, having alreadyasked for and received two extensions.

Chiasson would not comment on whether theyre confident they can get that funding by the end of the year, saying instead "We are working very diligently to get to the next stage (and) build our first commercial plant here. We are very encouraged about where we are going to end up."

The city reached a 20-year, $180 million deal with Plascoin 2012to process up to 300 tonnes of residential waste per day, turning it into energy using a process called plasma gasification using electricity and high temperatures to break waste down into gas and solid waste.But the technology has not been proven to work on a large scale.

Plascosaid after the second extension they still plan to start treating some of the city's residential waste by 2016.

In a statement, city media relations officialssaid the city isn't reading into the decision.

"In keeping with Councils direction, the City looks forward to an update from Plasco by the end of the year," the statement said.

"In the interim, the City is not in a position to speculate about Plascos Human Resources or business operations decisions."