Apr 6 2015
UK: Deal agreed to build €265m Tilbury waste wood to power plant
A Danish power plant consortium, Burmeister & Wain Group and technology supplier Aalborg Energie Technik has reached financial close to build a 40 MW waste wood-fired power plant at Tilbury on the River Thames close to London. A contract for waste fuel supply has also been signed with Stobart Group Ltd. The plant will be built by Burmeister & Wain Scandinavian Contractor A/S. Construction of the processing facility is planned to begin this year and commissioned in July 2017.
Burmeister & Wain Group in consortium with technology supplier Aalborg Energie Technik will build the Tilbury Green Power biomass project under an engineering, procurement and construction contract .The total investment is approx. DKK 2 billion/EUR 265 million. The Tilbury project is the third biomass power plant project in co-operation by EKF and BWSC. Other projects are being built at Widnes and Lisahally, in northern Ireland.
Tilbury Green Power marks ESB’s first investment in the U.K. waste and biomass sector. According to statements issued by GIB and ESB, each are committing £35m in a combination of equity and shareholder loans, with an additional £2m participation from technology provider Aalborg Energie Technik a/s. Senior debt funding is being provided by EKF (Eksport Kredit Fonden), Investec and Rabobank.
The new power plant will be owned by a consortium including major shareholders the Green Investment Bank, Ireland’s Electricity Supply Board’ and AET as minority shareholder. Additionally, senior debt funding is being provided by Danish Export Credit Agency, Investec and Rabobank.
The project includes a 40 MW waste wood-fired power plant located directly at the Thames River in Tilbury, near metropolis London. when it is commissioned in July 2017.
The 40 MW Tilbury Green Power facility will be powered by approx. 285,000 tonnes of waste wood each year, and can handle wood material from e.g. construction sites. Due to the location close to London, the power plant will be given a function to reduce the amount of waste in the city. Up to 300 jobs will be created during the construction phase and nearly 50 permanent jobs in on-going operations. Tilbury Green Power recently signed a 15-year, index-linked contract with Stobart. As part of the project at the Port, Stobart announced it will invest £7.5m in the construction of a new processing facility that will be built adjacent to the power station, enabling on-site processing of fuel.
Anders Heine Jensen, CEO of BWSC said: “This deal follows last year’s successful financial closure of the Widnes plant and demonstrates BWSC’s strong commitment in providing sustainable energy solutions to the UK.”
The project is not associated with RWE npower’s proposed Tilbury station biomass conversion, which was cancelled in 2013.