Biomass Pellets
Tom Keighley

Member Article

Two major North East renewables projects secure Government contracts

Two key renewable energy generation projects in the North East have secured backing from the Government in the form of ‘Contracts for Difference’ (CfDs).

Biomass projects from Lynemouth Power Limited, near Ashington and MGT Power Limited on Teesside have secured the contracts which guarantee prices for suppliers.

Both operators will receive a fixed strike price for electricity they produce for 15 years, and are intended to give investors confidence to put money into renewable projects.

The contracts are the first awarded under the Government’s new energy market reforms programme, and are among six others awarded throughout the UK.

Energy and Climate Change Secretary Edward Davey said: “These contracts for major renewable electricity projects mark a new stage in Britain’s green energy investment boom.

“By themselves they will bring green jobs and growth across the UK, but they are a significant part of our efforts to give Britain cleaner and more secure energy.

“These are the first investments from our reforms to build the world’s first low carbon electricity market - reforms which will see competition and markets attract tens of billions of pounds of vital energy investment whilst reducing the costs of clean energy to consumers.

“Record levels of energy investment are at the forefront of the Government’s infrastructure programme and are filling the massive gap we inherited. It’s practical reforms like these that will keep the lights on and tackle climate change, by giving investors more certainty.”

The Lynemouth Power Station was originally a coal-fired station operated by Rio Tinto Alcan, employing around 130 staff. Following the firm’s decision to close its Lynemouth operations, the 400 MW power station was at threat of closure.

A proposed multi-million conversion to biomass by Lynemouth Power Limited rescued the facility and is likely to be operation from 2015.

MGT Power Limited’s Teesside Renewable Energy Project is a proposed 300 MW biomass combined heat and power station that will burn woodchip to generate electricity, and will be operation from 2018.

This was posted in Bdaily's Members' News section by Tom Keighley .

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