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CIP and BWSC invest DKK 1.4 billion in combined heat and power plant (CHP)

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BWSC is a world-leading provider and operator of turnkey power plants, based on a wide variety of advanced technologies using traditional or dry/wet biomass fuels.

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By BWSC, August 10, 2016

The Kent, UK biomass power plant will have a capacity of 27.8 MW and will be fired primarily with virgin wood sourced locally in the UK. The power plant is expected to be in operation during the summer of 2018.

The fund Copenhagen Infrastructure II and Burmeister & Wain Scandinavian Contractor A/S (BWSC) have acquired 100% of the biomass-fired combined heat and power plant project Kent in the UK developed by Estover Energy Ltd and at the same time taken the investment decision to construct the project. The total investment in the Kent project will amount to approximately GBP 160m.

The power plant will be constructed by BWSC which is also the business partner of Copenhagen Infrastructure Partners (CIP) on two other biomass plants in the UK. BWSC will furthermore be responsible for operation and maintenance of the plant under an O&M contract for up to 20 years.

The plant will be able to produce power corresponding to the power consumption of 50,000 households. Heat and some of the power will be delivered to Discovery Park. Discovery Park is one of the UK’s leading science parks located in Sandwich, Kent, a global hub for science, technology, business and enterprise.

– Read more about: Bioenergy

The entire biomass required will be sourced under a long-term contract with Euroforest, one of the largest virgin wood suppliers in the UK. The plant will deliver CO2 savings of approximately 100,000 tonnes every year.

The project is located in Kent near Sandwich in the UK and has been developed by Estover Energy Ltd.

The total investment in Kent amounts to approximately GBP 160m of which Copenhagen Infrastructure II K/S will invest around 80% and BWSC around 20%. Estover Energy Ltd will once commercial operation commences hold a minority interest in the project.

“Our investment in Kent builds on our good experience with the UK biomass power market which to date includes the Brigg project which was commissioned in January 2016 and the Snetterton and Templeborough projects that are under construction and planned to be commissioned in 2017. The Kent project presents an attractive investment opportunity for CIP in a country with a well-established and stable regulatory regime. The investment is aligned with our strategy of developing projects benefitting from long-term contracts with strong industrial partners in order to deliver stable returns for our investors”, says Christina Grumstrup Sørensen, Senior Partner in CIP.

“The Kent project is BWSC’s eighth turnkey biomass power plant project in the UK within the last 5 years, and it underlines our strong position on the UK renewable energy market. The project also illustrates the value of the close cooperation between strong financial and industrial players in the energy sector resulting in attractive business opportunities and investments for both parties. With the Kent project, BWSC has once again strengthened its role as market leader within constructing, operating and owning energy efficient power plants”, says Anders Heine Jensen, CEO in BWSC.


– Download State of Green’s white paper on Danish bioenergy solutions

 

Source: BWSC

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