21-09-2015 BWSC to deliver high-efficiency CHP plant in Northern England
BWSC will be delivering a high-efficiency biomass plant in Cramlington, Northern England. The project is backed by solid UK green energy investors and is in line with the UK target of efficient and renewable energy.
The Cramlington project will be yet another plant to add to the UK’s portfolio of green and energy efficient biomass power plants. Developer behind the mGBP 137 project is the renewable energy company Estover Energy, and the equity investors are UK Green Investment Bank and John Laing Group plc. Barclays will provide the remainder of the funding as debt, 60%, of which will be guaranteed by the Danish export credit agency Eksport Kredit Fonden (EKF).
Currently, BWSC has 5 other biomass plants under construction in the UK, but the Cramlington project stands out in terms of the applied technology. The combined heat and power plant is based on the reheat technology, which is known from large power plants but is relatively new to power plants of this size. The steam is led through two heating processes and two turbines instead of usually one for an increased utilisation of energy. This improves fuel efficiency and provides a higher plant output which is both an economic and environmental advantage. The Cramlington CPH plant will be the first reheat biomass plant in the UK and is expected to reduce CO2 savings by 56,000 tonnes annually compared to a gas-fired power plant.
The turnkey power plant, with an output of 27.8 MW, is expected to be up and running by the end of 2017. The finished facility will generate 223 GWh of renewable electricity annually – enough to power 52,000 homes - and will be supplying power and heating to 2 pharmaceutical companies on a direct wire and pipeline and export the remaining power to the national grid. Around 240 jobs are associated with the construction stage, and operation of the plant will generate up to 25 permanent positions.
Anders Heine Jensen, CEO, BWSC, in comment: “The Cramlington project is a good example of BWSC constantly striving to develop new and more energy efficient solutions for the benefit of our customers and the environment. Furthermore, we are very pleased that our energy solutions contribute positively to both the local community and the general UK target of increased renewable energy”.
About the project
BWSC will deliver the Cramlington CHP plant in consortium with the Danish boiler supplier, Burmeister & Wain Energy A/S, and will furthermore handle operations and maintenance for a 12-year period. The Cramlington biomass CHP plant will be powered by a combination of virgin wood and forest residues from sustainable forestry and clean recycled waste wood.
About the parties
Burmeister & Wain Scandinavian Contractor A/S (BWSC) is a Danish engineering and contracting company which develops, builds, operates and owns high-performance biomass, biogas and diesel power plants. The majority of the projects are supplied as turnkey plants, and BWSC has delivered more than 175 power plants to 53 countries worldwide with a total capacity of more than 3,500 MW. Currently, BWSC has on-going activities in England, Northern Ireland, Surinam, Lebanon and the Cayman Islands. In 2014, BWSC had a turnover of DKK 1.8 billion. BWSC originates from the stationary engine division of Burmeister & Wain (B&W), which has built and installed diesel engines for power plants since 1904. BWSC was established as a separate specialist company in 1980 and was acquired by Mitsui Engineering and Shipbuilding Co. Ltd. in 1990.
Burmeister & Wain Energy A/S (BWE) designs and supplies high-efficiency power plant boilers to the energy industry. BWE is highly specialised within development and design of advanced steam boiler systems for private and public power plants. Similar to BWSC, BWE has its roots in Burmeister & Wain, but has been part of the Italian STF Group since 2002.
UK Green Investment Bank:
The UK Green Investment Bank was launched in November 2012. With GBP 3.8 billion of funding from the UK Government, it is the first bank of its kind in the world. It is a "for profit" bank, whose mission is to accelerate the UK's transition to a greener economy, and to create an enduring institution, operating independently of Government.
John Laing Group plc.:
John Laing is an international originator, active investor and manager of infrastructure projects. Its business is focused on major transport, social and environmental infrastructure projects awarded under governmental public-private partnership (PPP) programmes, and renewable energy projects, across a range of international markets including the UK, Europe, Asia Pacific and North America. John Laing’s current investment portfolio is valued at approximately mGBP 700.