Poyry awarded contract for Tees Renewable Energy Plant

PX Engineering Consultants Ltd., part of the PX Group, has awarded Pöyry with the technical services assignment for its technical owner's engineering contract with MGT Power Ltd. for the 299 MWe biomass CHP Plant to be constructed in Teesport, U.K.

During the early stages of project development, Pöyry provided MGT with front end engineering design and, during the final stages up to financial close, technical support for the tendering and negotiation of the EPC contract.

This new assignment for the implementation phase includes assistance in design review and construction supervision together with technical support during erection, commissioning, testing and hand-over, and support during the warranty period.

MGT Power is an independent British company focused on large scale biomass projects which use sustainable forestry as fuel supply.

The £650 million Tees Renewable Energy Plant will utilize sustainable biomass fuels, from the U.K. and globally, to generate around 2.4 TWh of electricity each year.

"The Tees REP project has had to overcome many hurdles in development but we have now successfully reached the next stage despite the difficult financing environment. Support from the local region and a big team effort from Macquarie, PX Group, Pöyry, RPS and Mace were instrumental in getting there," said Ben Elsworth, CEO of MGT Teesside. "We can't wait to get work started on site and make this project a huge success."

"We are delighted to have been selected to support MGT on this prestigious biomass project" said Ian Clifford, PX Group CEO. "The fact that the plant is on our doorstep, that it increases our involvement in the renewable energy sector and endorses our engineering and project management expertise, makes it particularly satisfying."

"The signing of financial agreements is a great success for the renewable energy industry and paves the way for the world's largest new-build biomass combined-heat-and-power (CHP) plant to be constructed in the U.K.," said Julian Scutter, U.K. head of renewables for Pöyry's Energy Business Group. "The plant will utilize modern circulating fluidized bed technology to generate 299MWe of electricity—supplying the equivalent of 600,000 households—and will be one of the most important thermal power plant build projects for decades." 

The value of the order is not disclosed. The order will be recognized within the Energy Business Group order stock in Q3/2016.