Mitsui Engineering, partner to build 27.8-MW biomass plant in UK

A consortium involving a unit of Japan's Mitsui Engineering & Shipbuilding Co Ltd (TYO:7003) has won an order for a 27.8-MW biomass combined heat and power (CHP) plant in Cramlington, northern England.

The Japanese group said Wednesday its 100% subsidiary Burmeister & Wain Scandinavian Contractor A/S (BWSC) will build the plant on a turn-key basis in a consortium with Danish boiler supplier Burmeister & Wain Energy A/S (BWE). The contract includes a 12-year operation and maintenance agreement.

The CHP plant is expected to be operational by the end of 2017 and to generate 223 GWh of electricity per year, enough to power 52,000 homes. It will supply power and heating to two pharmaceutical companies and export the remaining power to the national grid.

The plant will use reheat technology, which is typically employed in large power facilities to improve fuel efficiency and plant output, according to the announcement.

The GBP-138-million (USD 209m/EUR 191m) project, developed by Estover Energy, secured financing in September. The UK Green Investment Bank Plc (GIB) and John Laing Group Plc committed equity, while Barclays Plc provided debt.

(GBP 1.0 = USD 1.517/EUR 1.386)

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