Kedco names preferred EPC contractor for Enfield project
Ireland-based Kedco plc has released an update of its proposed biomass combined-heat-and-power (CHP) project in Enfield, London. The 12 megawatt (MW) facility is being developed by Enfield Biomass Ltd., a fully owned subsidiary of Kedco.
In its progress report, Kedco announced the selection of MWH Global Inc. as its preferred construction contractor for the project. MWH, a provider of engineering, procurement and construction (EPC) services, has offered a turnkey solution for project construction. According to Kedco, draft EPC contracts have been exchanged and detailed negotiations are in progress. A final contract is expected to be signed soon.
The company also announced progress with agreements for the facility’s future power and heat output, as well as a grid connection agreement. According to Kedco, it has selected Statkraft Markets GmBH as its preferred partner for the purchase of electricity generated for the plant. Draft contracts for a long-term power purchase agreement for 100 percent of the plant’s electrical output have been exchanged.
Regarding the facility’s heat output, Kedco announced it is continuing to work with an entity located close to the project to development a heat offtake agreement. According to progress report, a detailed heat study and pipe route layout are complete, and advanced discussions are taking place with respect to commercial terms of the offtake agreement.
In addition, Kedco is engaging in ongoing discussions with the UK Power Networks to finalize the construction program to connect the Enfield plant to the grid and is making progress with feedstsock procurement. The company noted that it is continuing to negotiate heads of terms for feedstock with several suppliers, with the intention to contract the majority of feedstock required when then it closes funding for the project.
Kedco is working with the Foresight Group with regard to project financing. The company reported due diligence has commenced and both parties are aiming to reach financing close during the fourth quarter of 2013. Construction is expected to begin as soon as financing is secured.
In June, Kedco named the Foresight Group as its preferred funding partner for the Enfield project and appointed Fichtner Consulting Engineers Ltd as the project’s technical advisor.