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Released November 05, 2013 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - China's interest in the U.K. electricity generation market continues this week with news that a subsidiary of Chinese energy giant China General Nuclear Power Group (CGNPG) (Shenzhen) is bidding for a 2,000-megawatt (MW) coal-fired plant.
Meiya Power has been confirmed as a frontrunner to acquire the Eggborough coal-fired power station in North Yorkshire, which is responsible for generating 4% of the country's power. A binding bid is expected to be made next month. Other companies in the running include Philippines-based energy company, Manila Electric Co.
The news come just weeks after Industrial Info reported on the government clearing the way for Chinese companies to invest in U.K. nuclear projects. Electricite de France (EPA:EDF) (Paris) confirmed that two Chinese companies, China General Nuclear Power Group and China National Nuclear Corporation (CNNC), will become minority shareholders in the £16 billion ($25.8 billion) Hinkley Point C project with a joint stake of between 30-40%. Signing a Memorandum of Understanding with China last month, chancellor George Osborne said the it could lead to Chinese companies taking majority stakes in future U.K. nuclear plants. For additional information, see October 18, 2013, article - U.K. Clears Way for Chinese Companies to Invest in Nuclear Plants.
Eggborough's owners are keen to convert the plant to burning biomass in order to lower emissions and extend the plant's life. Plans are underway to convert three of the plant's four units to bur biomass, with a total generating capacity of 1,350 MW and at a cost of more than 476 million ($643 million). The plant was recently confirmed as a pre-qualifier for a share on the government's 47 billion ($63 billion) infrastructure loans.
This summer, the European Investment Bank (EIB) confirmed it was considering loaning U.K. firm Drax Group plc (LSE:DRX) (Selby, England) 123 million (US$160 million) to support its coal-to-biomass conversion project at the 4,000-megawatt (MW) coal-fired plant in Selby, the U.K.'s largest coal-fired plant. If granted it would help fund converting three of the six coal-fired units at the power plant for burning biomass. For additional information, see July 4, 2013, article - Drax Coal-Fired Conversion Seeks European Funding.
Not all U.K. biomass conversion projects have succeeded. In August, the largest biomass conversion plant in the U.K. generated its last power after failing to secure government subsidy funding. The former 1,100 MW coal fired plant at Tilbury in Essex had been converted into a 750-MW biomass plant in 2011 by plant owner RWE npower (Swindon, England). The company blamed the decision on being unable to secure additional funding from the government under its new low-carbon energy scheme, or Contracts for Difference, to fully convert the power plant to biomass. For additional information, see August 20, 2013, article - Largest Biomass Plant in U.K. Closes.
View Plant Profile - 1056539 1073074 1069851
View Project Report - 300086026 300087000 300090637
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
Meiya Power has been confirmed as a frontrunner to acquire the Eggborough coal-fired power station in North Yorkshire, which is responsible for generating 4% of the country's power. A binding bid is expected to be made next month. Other companies in the running include Philippines-based energy company, Manila Electric Co.
The news come just weeks after Industrial Info reported on the government clearing the way for Chinese companies to invest in U.K. nuclear projects. Electricite de France (EPA:EDF) (Paris) confirmed that two Chinese companies, China General Nuclear Power Group and China National Nuclear Corporation (CNNC), will become minority shareholders in the £16 billion ($25.8 billion) Hinkley Point C project with a joint stake of between 30-40%. Signing a Memorandum of Understanding with China last month, chancellor George Osborne said the it could lead to Chinese companies taking majority stakes in future U.K. nuclear plants. For additional information, see October 18, 2013, article - U.K. Clears Way for Chinese Companies to Invest in Nuclear Plants.
Eggborough's owners are keen to convert the plant to burning biomass in order to lower emissions and extend the plant's life. Plans are underway to convert three of the plant's four units to bur biomass, with a total generating capacity of 1,350 MW and at a cost of more than 476 million ($643 million). The plant was recently confirmed as a pre-qualifier for a share on the government's 47 billion ($63 billion) infrastructure loans.
This summer, the European Investment Bank (EIB) confirmed it was considering loaning U.K. firm Drax Group plc (LSE:DRX) (Selby, England) 123 million (US$160 million) to support its coal-to-biomass conversion project at the 4,000-megawatt (MW) coal-fired plant in Selby, the U.K.'s largest coal-fired plant. If granted it would help fund converting three of the six coal-fired units at the power plant for burning biomass. For additional information, see July 4, 2013, article - Drax Coal-Fired Conversion Seeks European Funding.
Not all U.K. biomass conversion projects have succeeded. In August, the largest biomass conversion plant in the U.K. generated its last power after failing to secure government subsidy funding. The former 1,100 MW coal fired plant at Tilbury in Essex had been converted into a 750-MW biomass plant in 2011 by plant owner RWE npower (Swindon, England). The company blamed the decision on being unable to secure additional funding from the government under its new low-carbon energy scheme, or Contracts for Difference, to fully convert the power plant to biomass. For additional information, see August 20, 2013, article - Largest Biomass Plant in U.K. Closes.
View Plant Profile - 1056539 1073074 1069851
View Project Report - 300086026 300087000 300090637
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
