£500m strike price deal for UK Energy plant

AMERICAN industrial gases giant Air Products is set to go-ahead with plans for a new £300m power station after winning a £500m contract to supply electricity to the Government.

Earlier this year Air Products started work on its first 50MW advanced gasification plant in Billingham.
Its plans for the second plant, on land adjacent to the first one, are currently being considered by Stockton Borough Council and if approved Air Products will press ahead with construction after winning the Government contract.

In an unusual move, the Government announced it had agreed to a power purchase agreement with Air Products to buy 37MW of electricity from the plant, at a cost of around £25m a year, for 20 years.

Air Products will receive a Government subsidy of around £70 per MW/h in addition to the price agreed between the two parties for electricity. The current wholesale price of electricity is around £50 per MW/h.
The deal highlights the Government’s desire to support renewable energy projects.

The Minister for the Cabinet Office Francis Maude said: “This is the beginning of a pioneering approach to how government uses its collective buying power and long term demand to buy energy.

“Not only have we secured £84m of savings for taxpayers by signing a new, low cost energy deal with Air Products, but we’re also helping the UK compete in the global race by investing in growth and creating hundreds of new jobs through the construction of a new energy from waste plant.

“Our aspiration is to develop world-leading, exportable technology, and the new state-of-the-art site in Teesside will help the UK become a centre of renewable technology. This is about changing the way we work to not only get the best out of our suppliers, but the best out of the UK.”

Lisa Jordan, Air Products’ business manager for Bio-Energy Europe, said: “We are delighted that the Cabinet Office has agreed to purchase the power which we expect to produce at a new Tees Valley Renewable Energy facility, subject to planning and approval later this year.

“By buying the electricity we produce, the Cabinet Office will help Air Products divert up to 350,000 tonnes of non-recyclable waste from landfill every year, which we will turn into reliable, controllable, renewable energy.”

The two plants are costing Air Products around £600m and will be the largest of their kind in the world. Between them they have the potential to recycle the rubbish from more than one million households.

The waste is heated in a process called advanced gasification producing a syngas, which is composed mainly of hydrogen, and is used to power a turbine and generate electricity.

When the two plants are up and running they will employ around 100 people, with over 700 people involved in construction of each.

ENDS

Comments

Zero-Energy Poverty Will ‘Trump’ Net Zero

THE progressive pathologies of the 21st Century are collapsing around us so could the most economically damaging of the lot be next? Mass, low-skilled immigration is now acknowledged as a drain on a host nation’s economy, detrimental to social cohesion, and a fuel for criminality. Meta boss Mark Zuckerberg has binned arch-liberal Nick Clegg for a Trump supporter Joel Kaplan; prostrating at incoming President Trump’s feet, he acknowledged his culpability in censoring free speech. America’s leading banks are withdrawing from the Net Zero Banking Alliance which has curtailed investment in hydrocarbons in favour of unreliable renewables. And, now Trump’s incoming energy secretary Chris Wright, is set to axe the damaging Net Zero fallacy in favour of a global focus on Zero Energy Poverty. Wright, Founder and CEO of US gas fracking firm Liberty Energy, says Net Zero is a threat to the prosperity of mankind. Net Zero Lies Where Wright and Trump’s Net Zero scepticism is s...

Net Zero Is Rooted In Socialist ‘Science Fiction’

THE dismantling of the globalists’ Net Zero deceit continues apace as energy prices continue to rise, Arctic sea ice stubbornly refuses to melt and US President Trump’s energy advisors spear the technocrats supra-national ambitions. Hatched by a series of anti-fossil fuel, communist activists and whipped into a planet-saving, apocalyptic, frenzy by the unquestioning technocrats at the United Nations, Net Zero is primarily a capitalism hatchet job. Back in 2015 when Net Zero was being embraced by the elite, UN boss Christiana Figueres, key driver of the Paris climate deal, revealed their hand. "This is the first time in the history of mankind that we are setting ourselves the task of intentionally transforming the economic development model that has been reigning since the industrial revolution," she opined (1). Well, this state-mandated ‘socialist utopia’ maybe what the UN, the WEF, the Club of Rome, Blackrock and their political acolytes want - but it is far removed f...

The Un-economic Reality of So-Called ‘Green’ Energy

Acme inc recently appointed a new chief executive, and he got off to a flying start. With the wind in his sails he ripped it up with some a stunning opening results, but the dynamic subsequently shifted. And, now It seems that he can only work around 25% of the time (1). On joining he brought in his own team of administrators and executives at an additional onerous financial cost to the business and while they continue to beaver away they are non-productive overheads. (2) Well, surely you’ll be firing him shortly if he can only work 25% of the time. What’s his problem? Well, occasionally on the days when he doesn’t want to work we can reach him on what’s app or the phone and he’s able to deliver some stunning insights, (3) but that’s rare as we don’t know where he is most of the time. What’s the board going to do about this? Well as we have a lot of Government cash to support the business (4), and his appointment was the result of pressure from many virtue-signalling direct...

Peter McCusker Energy & Climate

Search This Blog