Progress on construction of a new refuse incinerator is at risk of stalling further amid a “challenging period” for the industry, officials say.

The Edmonton Incinerator redevelopment at Edmonton Eco Park, which will replace the existing, ageing waste-burning facility, has hit a series of obstacles and might not be finished on time.

Global inflation, rising labour costs and and expensive construction materials have all contributed to the delay, according to North London Waste Authority (NLWA), which is leading the project.

NLWA is controlled by councillors from Barnet, Camden, Enfield, Hackney, Haringey, Islington and Waltham Forest, and is responsible for disposing of waste from the seven boroughs.

Heat generated by the new incinerator is expected to power 127,000 homes, 55,000 more than the existing ‘energy from waste’ facility, and heat a further 60,000.

Last year, it was reported that the overall budget for the incinerator, as well as other new North London Heat and Power Project facilities at Edmonton Eco Park, had risen from £1.2 billion to around £1.5bn.

Material costs are around 40% higher than in 2020, despite recent falls, while a shortage in skilled workers has made it “significantly more expensive” to hire them.

The cost of shipping appears to also be rising once again as tension in the Middle East causes disruption in the Red Sea.

NLWA currently hopes to have the new incinerator fully up and running by 2027, two years later than originally forecast.

Construction firm Acciona, which was awarded the contract to build it in 2021, has also faced “continued” delays in bringing in subcontractors for the next stage of the development.

Officers from NLWA have been pressing them to produce a “realistic” schedule and delivery plan, but fears Acciona may struggle to meet its existing contractual obligations.

They have been meeting “regularly” with Acciona on how to “restore on site momentum” and minimise future delays, NLWA says.

While the specifics of Acciona’s recovery plan have not yet been published, NLWA has warned the company it may have to pay damages if the project is not finished on time.

An officer wrote in a July report: “It is not in the authority’s interest to be working with a contractor facing significant financial challenges.”

But members of the Stop the Edmonton Incinerator Now campaign say the authority should “pull the plug”.

Spokesperson Carina Millstone said: “The NLWA must urgently provide its seven constituent councils with updated financial projections in light of these delays, given new national climate and waste management policies.

“It’s not too late for the councils to safeguard their budgets, their climate, air pollution and waste targets, and do the right thing by their taxpayers, by pulling the plug on this outdated, outsized, toxic incinerator.”

A spokesperson for NLWA said that, despite the shortfalls, progress was “being made” and steelworks were due to start “imminently”.

They continued: “We are working closely with Acciona to work up and agree a revised timetable and understand potential impacts on cost.

“Our priority is to make sure we secure the best environmental and financial outcomes for our constituent boroughs and council taxpayers.”

Environmental campaigners previously attacked the new incinerator’s size, saying it was far bigger than needed, and have highlighted how North London households produced thousands of tonnes less rubbish in 2023 than the year before so waste will have to be imported to keep it burning efficiently.

But the authority has repeatedly defended its scope and says the population in North London is expected to rise between 10% to 45% in coming years. More people will also be living in flats and apartments in future, which have a lower recycling rate than houses.

NLWA says that while it expects people will recycle more and produce less waste in the future there will also be more people producing waste.