B&W Volund, Stobart win England biomass CHP plant contracts

Plans for the Teesside Renewable Energy Plant, a 40-MWe biomass cogeneration facility to be located at Port Clarence in Cramlington, Northumberland, England, continue to advance, with the sale of the facility and signing of design, construction, operation and fuel supply agreements.

Project developer Eco2, which has developed several other U.K. biomass projects, and Temporsis Capital began the project two years ago, and recently sold the facility to Glennmont Partners via a £160 million ($242 million) deal. The project is being funded by Glenmont Partners with debt arranged and provided by Deutsche Bank and Danske Bank, supported by EKF, the export credit agency of Denmark.

Babcock & Wilcox Vølund A/S recently won a contract to design and build the plant with joint venture partner Lagan Construction Group Ltd., as well as a separate contract to provide operations and maintenance services for the plant, a collective contractual value of more than $190 million.

The project scope includes a boiler and environmental controls designed by B&W Vølund and its Götaverken Miljö AB subsidiary, including a dry flue gas desulfurization system) fabric filter baghouse, continuous emissions monitoring equipment and a DynaGrate fuel combustion system, according to B&W Vølund.

. B&W Vølund will operate the plant under a 15-year contract.

Stobart Energy has landed a contract to provide fuel to the facility. Under the agreement, Stobart will source, process and supply 250,000 metric tons of recycled waste wood to the plant annually for 14 years, equating to 3.5 million metric tons over the life of the agreement.

Stobart Energy's Transport business will be responsible for transportation of the product, delivering 250 loads each week to Port Clarence, according to the company.

Project engineering of the Teeside Renewable Energy Plant is underway, and construction is scheduled for completion in the first quarter of 2018.