26 February 2015 by Tom Goulding

Wheelabrator EfW wins ‘contract for difference’ in DECC auction

Wheelabrator Technologies’ proposed energy from waste facility in Kent has been awarded a ‘contract for difference’ by the Department of Energy & Climate Change (DECC) today (February 26).

It is one of 27 renewable energy projects to have secured funding from the first round of DECC’s £315 million auction, which aims to support the delivery of ‘green electricity’ infrastructure in the UK.

Close up artist impression of the K3 CHP facility - October 2014

An artist’s impression of Wheelabrator’s K3 CHP facility, which will supply steam to DS Smith’s paper mill

The K3 CHP Energy Recovery Facility, which is scheduled to begin operations in 2018, will be capable of processing 550,000 tonnes of refuse-derived fuel per year.

The Sittingbourne plant is destined to provide steam for DS Smith’s adjacent Kemsley paper mill, as well as provide power to the National Grid.

The facility was awarded a permit by the Environment Agency in 2011 (see letsrecycle.com story) and was later granted planning permission by Kent county council in March 2012.

Paul Green, Wheelabrator Technologies’ director for business development, said: “Wheelabrator is delighted to have been awarded a Contract for Difference for our proposed energy recovery facility in Kemsley. This allocation, along with the planning consent and environmental permit, make the K3 CHP Energy Recovery Facility a very real and deliverable project.

“We expect construction work to begin later this year which will create hundreds of jobs and supply chain opportunities. Once K3 CHP is operational, it will supply large volumes of steam to DS Smith’s Kemsley paper mill and provide renewable electricity to the National Grid.”

Contracts

The Wheelabrator plant is one of five waste-related projects to have been successfully allocated funding based on bids in the first round of the scheme.

Other applicants include Energy Works’ proposed gasification and anaerobic digestion facility in Hull, which has also been designed to be CHP-enabled, and BHEG Walsall’s proposed 300,000 tonnes-per-year capacity waste recovery centre in Walsall, which will export around 26MW of electricity to the National Grid.

Enviroparks Operations also secured funding for its 11MW MRF, AD and gasification project in Hirwaun, as did Gent Fairhead & Co for its proposed Wren Power and Pulp EfW plant.

According to DECC, 2GW of new capacity could be built via the auction, costing £110 million per year less than it would have without competition.

Energy & Climate Secretary Ed Davey added: “This world leading auction has delivered contracts for renewables projects right across the UK. These projects could power 1.4 million homes, create thousands of green jobs and give a massive boost to home-grown energy while reducing our reliance on volatile foreign markets.

“The auction has driven down prices and secured the best possible deal for this new clean, green energy.”

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