Major investments in north-east CHP plants

Almost £300m is being invested into two new combined heat and power (CHP) plants in Northumberland and Durham.  The Green Investment Bank (GIB) and property developer John Laing Group have committed £48m to a new CHP plant in Cramlington, whilst in a separate investment £160m will be put towards a waste-wood-fired power station in Stockton-on-Tees.

The Cramlington CHP plant will generate 213GWh annually.  The power output will be split between local pharmaceutical businesses and Norwegian energy firm Stratkraft, through a power purchase agreement.  Meanwhile, clean energy fund manager, Glenmont Partners, has acquired the Port Clarence Energy Project on the banks of the River Tees.

The deal is part of a £160m investment programme that will lead to the building of a 40MW waste-wood-fired power station.  The plant will consume around 250,000 tonnes of waste wood per year, which will be diverted from landfill sites.  The Port Clarence Energy Project will also use the generated head for a nearby industrial estate.

Both projects are due to come online in 2018.

The North East is fast emerging as the UK’s epicentre for CHP projects.  In August, it was announced that Teesside would host the world's largest CHP plant, through a £424m project to develop a 299MW plant in Middlesbrough.

For more information, help or advice please contact Andrew Davison on 0191 211 7950.