Released July 21, 2009 | GALWAY, IRELAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--British renewable energy firm MGT Power Limited (London) has received consent from the U.K. government for developing the 295-megawatt (MW) Tees renewable energy plant, set to be one of the world's largest biomass-fueled plants and renewable energy projects ever built. The power project will be developed at Teesport at an estimated cost of £500 million ($825 million) and will provide an around-the-clock supply of electricity to about 600,000 households. The plant is expected to begin commercial operations in late 2012. With an estimated reduction of 1.2 million tons per year of carbon dioxide emissions, the Tees power plant will also contribute to 5.5% of the United Kingdom's target of generating 20% of energy from renewable sources by 2020.
The Tees power plant will operate on a feedstock of wood chips, which will be combusted to rotate a steam turbine. The power generated will be fed to the local grid. Wood chips for the facility will be procured from sustainable forestry sources in Europe and America. The Tees power plant is estimated to require about 2.4 million tons per year of wood chips. MGT Power plans to procure feedstock from the southeastern regions of the U.S. including Georgia, as well as other locations in North America, South America and the Baltic States. The firm also expects to be able to procure 200,000 tons per year of woodchips locally, which will contribute $26.35 million per year to the local economy. The firm has yet to finalize supply agreements for the feedstock.
MGT Power also plans to invest in certified sustainable forestry operations, known as short rotation forestry, for the continuous supply of woodchips. Fast-growing species of plants are cultivated on disused and marginal lands on a rotation basis every six years. About 17% of the plantation is harvested each year, which is then replaced with new cultivation. This ensures a sustainable and enduring forest cover, providing additional benefits such as long-term absorption of carbon dioxide and protection of wildlife. The wood will be chipped before shipment to the plant. Wood chips can be handled economically in large quantities and contain low amounts of chlorine and sulfur compared to recycled wood, making it safer for combustion. Clean wood chip fuel, derived from plant matter, is classified as a source of renewable energy under European and U.K. legislation and reduces greenhouse gas emissions by 95% in comparison to coal or natural gas.
In November 2008, MGT Power received approval for the Tees power project from the local authorities Redcar and Cleveland Council. However, according to the planning process of the U.K. government, any power project with a generation capacity of more than 50 MW requires endorsement from the central government.
As the Tees facility will operate around the clock at base load capacity, it is expected to generate more clean electricity per year than a 1000-MW windfarm. The 300-MW biomass-fired plant will be set up over a land area of 14 hectares on a disused industrial site at Teesdock, about six kilometers east of Middlesbrough and within the Port of Tees. In comparison, a windfarm of the same power generation capacity would require about 150 wind turbines to be erected over an area of 2,500 hectares. MGT Power has already entered into a contract with National Grid plc (NYSE:NGG) (London), under which the latter will obtain power from the plant when operations commence in 2012.
The power plant will be located about 1.5 miles away from the nearest residential locality, and will have insignificant visual and acoustic impact on residents. The facility will be equipped with fabric filters that will absorb more than 99.9% of the emissions resulting from combustion of wood chips. The process will also involve long residence times in the boiler to ensure very low emissions of nitrogen oxides. In order to ensure local support to the project, MGT Power held two exhibitions in Middlesbrough in August 2008 to educate the local populace on the project and its benefits.
MGT Power is also in talks with banks and financial institutions to secure funding for the project, with assistance from Ernst & Young (London) serving as the financial advisor to the firm. MGT Power expects to attain financial closure for the project and award contracts in time to be able to start work onsite by the end of this year. Construction of the power plant will take about three years to complete, during which 600 jobs will be created. When in operation, the facility will provide for 150 permanent and 300-400 indirect employment opportunities. The plant is expected to contribute about $49.4 million per year to the economy of northeast England.
View Project File - 078000488
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.
The Tees power plant will operate on a feedstock of wood chips, which will be combusted to rotate a steam turbine. The power generated will be fed to the local grid. Wood chips for the facility will be procured from sustainable forestry sources in Europe and America. The Tees power plant is estimated to require about 2.4 million tons per year of wood chips. MGT Power plans to procure feedstock from the southeastern regions of the U.S. including Georgia, as well as other locations in North America, South America and the Baltic States. The firm also expects to be able to procure 200,000 tons per year of woodchips locally, which will contribute $26.35 million per year to the local economy. The firm has yet to finalize supply agreements for the feedstock.
MGT Power also plans to invest in certified sustainable forestry operations, known as short rotation forestry, for the continuous supply of woodchips. Fast-growing species of plants are cultivated on disused and marginal lands on a rotation basis every six years. About 17% of the plantation is harvested each year, which is then replaced with new cultivation. This ensures a sustainable and enduring forest cover, providing additional benefits such as long-term absorption of carbon dioxide and protection of wildlife. The wood will be chipped before shipment to the plant. Wood chips can be handled economically in large quantities and contain low amounts of chlorine and sulfur compared to recycled wood, making it safer for combustion. Clean wood chip fuel, derived from plant matter, is classified as a source of renewable energy under European and U.K. legislation and reduces greenhouse gas emissions by 95% in comparison to coal or natural gas.
In November 2008, MGT Power received approval for the Tees power project from the local authorities Redcar and Cleveland Council. However, according to the planning process of the U.K. government, any power project with a generation capacity of more than 50 MW requires endorsement from the central government.
As the Tees facility will operate around the clock at base load capacity, it is expected to generate more clean electricity per year than a 1000-MW windfarm. The 300-MW biomass-fired plant will be set up over a land area of 14 hectares on a disused industrial site at Teesdock, about six kilometers east of Middlesbrough and within the Port of Tees. In comparison, a windfarm of the same power generation capacity would require about 150 wind turbines to be erected over an area of 2,500 hectares. MGT Power has already entered into a contract with National Grid plc (NYSE:NGG) (London), under which the latter will obtain power from the plant when operations commence in 2012.
The power plant will be located about 1.5 miles away from the nearest residential locality, and will have insignificant visual and acoustic impact on residents. The facility will be equipped with fabric filters that will absorb more than 99.9% of the emissions resulting from combustion of wood chips. The process will also involve long residence times in the boiler to ensure very low emissions of nitrogen oxides. In order to ensure local support to the project, MGT Power held two exhibitions in Middlesbrough in August 2008 to educate the local populace on the project and its benefits.
MGT Power is also in talks with banks and financial institutions to secure funding for the project, with assistance from Ernst & Young (London) serving as the financial advisor to the firm. MGT Power expects to attain financial closure for the project and award contracts in time to be able to start work onsite by the end of this year. Construction of the power plant will take about three years to complete, during which 600 jobs will be created. When in operation, the facility will provide for 150 permanent and 300-400 indirect employment opportunities. The plant is expected to contribute about $49.4 million per year to the economy of northeast England.
View Project File - 078000488
Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project opportunity databases, market forecasts, high resolution maps, and daily industry news.
