27 April 2020 by Robyn White

SSE sells 50% stake in Slough EfW project

Energy company SSE Thermal has sold a 50% stake in its Slough multi-fuel project to Copenhagen Infrastructure Partners.

The planned 450,0000 tonne per year capacity plant located on the Slough Trading Estate will now be a joint project between the two companies.

This comes as SSE separately announced that it has acquired 19.5 acres of land at Skelton Grange near Leeds for a proposed 410,000 tonnes per year capacity plant (more below).

Image of the Slough plant which is due for completion by 2025

Slough

The cost of the £350 million construction project in Slough will now be divided equally between SSE thermal and Copenhagen Infrastructrue Partners.

Managing director of SSE Thermal, Stephen Wheeler, said: “We are pleased to confirm the sale of a 50% stake in our Slough Multi-fuel project to CIP bringing an experienced partner on board and delivering value for our shareholders.

“When completed, Sough Multi-fuel will plan a key role in the UK’s sustainable waste management, diverting thousands of tonnes of waste away from landfill and instead converting it into a valuable source of energy.”

SSE thermal has held planning permission and carrying out site preparation works for the construction project since 2018.

Christina Grumstrup Sørensen, Senior Partner at CIP, said: “We are excited to be involved in the Slough Multi-fuel project. The continued partnership with SSE is highly regarded.

“We are excited to be involved in the Slough Multi-fuel project.”

Christina Grumstrup Sorensen, Copenhagen Infrastructure Partners

“We look forward to utilising our unique competences in sustainable investment delivery, and to working with local and leading partners in delivering a modern waste management facility to the highest standards.”

The construction is expected to start at the beginning of 2021 and take up to four years to complete.

Hitachi Zosen Inova  has been appointed as the contractor for the project.

Leeds

Meanwhile, plans for an EfW plant at Skelton Grange near Leeds have taken a step forward after Wheelabrator Technologies and SSE Thermal completed the purchase of 19.5 acres of land which will house the site.

The purchase of the land from property regeneration firm Harworth marks an “important step” in the development of a 410,000 tonnes per year capacity plant.

Multifuel Energy Ltd  – a 50:50 joint venture between Wheelabrator and SSE – says construction of the proposed plant is alsoexpected to commence in 2021.

Wheelabrator

Plans had previously been put in place for a 300,000 tonnes per-year facility to be built at the site by the waste management company Biffa, approved in 2013, but the development did not progress. Wheelabrator took over plans for the site in 2019, and announced that it had “secured the right” to purchase the land.

Generated image of the Skelton Grange energy from waste plant

 

Earlier this year, the plant was granted approval to increase the capacity to 410,000 tonnes per annum, which it says will be used to generate 45MW (gross) / 39MW (net) of renewable baseload energy.

“The facility is strategically located to treat non-recyclable waste from a catchment area which has a projected capacity shortfall of over 1M tonnes (1.1M tons) per annum,” a statement from Multifuel Energy explained.

Wheelabrator Technologies UK managing director, Julia Watsford said: “Completing the purchase of the land for Skelton Grange marks another significant milestone for Wheelabrator Technologies and the MEL joint venture. Skelton Grange Multifuel will further improve the UK’s waste-to-energy infrastructure at this critical time – not only will it safely treat waste by-products and divert non-recyclable waste from landfill, it will prevent the need for export of waste to Europe, reduce greenhouse gases, recycle metals that would otherwise go to landfill and generate renewable baseload energy. We look forward to construction commencing in 2021.”

“In these challenging times, we continue to focus on how to best deliver the critical infrastructure required to support the safe and reliable treatment of non-recyclable waste, both now and in the future.”

Ferrybridge

Skelton Grange is less than 15 miles from Ferrybridge 1 and Ferrybridge 2, which are part of the Multifuel Energy Limited.

Ferrybridge 1 commenced commercial operations in July 2015 and Ferrybridge 2 reached full commercial operations in December 2019, according to the company. Each facility processes up to 675,000 tonnes of non-recyclable waste per annum.

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