New JV to develop ?300m multifuel generation plant

RNS Number : 5022A

SSE PLC

02 April 2012

 



SSE and Wheelabrator to develop

£300m multifuel generation plant

SSE plc and Wheelabrator Technologies Inc. have entered into a 50:50 joint venture to develop a new £300m multifuel generation facility at SSE's Ferrybridge power station in West Yorkshire.

The joint venture - Multifuel Energy Ltd ("MFE") - expects to begin full construction of a 68MW multifuel facility in late 2012 and complete the project by early 2015.   Hundreds of jobs will be created during the three year construction period and over 50 new full time jobs will be required once the plant is fully operational. Construction will be undertaken by Hitachi Zosen Inova (HZI), which has extensive experience on similar multifuel projects.

Consent to develop the facility, which will use a range of waste-derived fuels to generate electricity and heat, was received from the Department of Energy and Climate Change in October 2011. When operational, the electricity generated by the plant will be sold to SSE. 

MFE has entered into a long-term fuel procurement contract with 3SE (SSE's joint venture with Shanks Plc), which will provide processed waste-derived fuels using waste taken from nearby Barnsley, Rotherham and Doncaster councils.  To support this contract 3SE intends to develop a new Mechanical Biological Treatment ('MBT') and Anaerobic Digestion ('AD') facility at Bolton Road, Manvers. Subject to planning permission, this is expected to be operational by 2015. 

The multifuel plant at Ferrybridge is not intended to replace the existing 1,000MW of coal capacity which is closing in 2015 due to the European Large Combustion Plant Directive (LCPD). SSE has not yet made a decision on the future main use of Ferrybridge Power Station, which is currently also home to the UK's largest carbon capture trial, CCPilot100+, in conjunction with Doosan Power Systems and Vattenfall.  

 
SSE's Managing Director of Generation, Paul Smith said:

 "Multifuel technology is a tried and tested way of generating clean, base-load power. This new multifuel plant will provide additional diversity to SSE's generation portfolio and make a useful contribution to ensuring we have reliable energy supplies for the future.

"The transactions that make up this project represent a strong partnership between four major players in the multifuel sector, who are committed to making a serious level of investment in this technology. Between them the companies involved have extensive experience in sourcing and processing waste, constructing and commissioning multifuel technologies, and operating generation plant.  This partnership creates a great platform to develop multi-fuel technology in future."

Managing Director of Wheelabrator Technologies in the UK, Gary Aguinaga, said:

"Wheelabrator is delighted to reach contractual close with SSE to design, build and operate a modern multifuel facility at the Ferrybridge site in West Yorkshire. We are committed to forming strong partnerships as we continue to expand our operations across the UK and Europe. Through the Multifuel Energy joint venture, we are combining our expertise and experience to deliver a state-of -the-art facility which will provide significant amounts of clean energy."

"On-site preparation work is underway and full construction will begin in the summer.  This will provide employment for hundreds of workers over the three year building phase and we look forward to the Ferrybridge multifuel facility being fully operational by summer 2015."

ENDS

For more information contact:

SSE plc:Justyn Smith on 0845 0760 530 or [e-mail]

Wheelabrator Technologies Inc:  Jo Hoare on 07867 394 319 or [e-mail]

Shanks Group plc: Austen Lees on 01908 650650 or [e-mail]

 

END

 

 

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