First structural steel works (starting with the boiler) are expected to begin in the second half of 2017 at the Teesside Renewable Energy Plant in the UK, which, at 299 MWe gross, is expected to be the largest CFB (circulating fluidised bed) boiler based fully-biomass-fuelled power plant in the world when it achieves commercial operation, expected 2020.

Amec Foster Wheeler has been awarded the contract for the design and supply of the CFB boiler and has received notice to proceed by the consortium of Tecnicas Reunidas of Spain and Samsung Construction & Trading of South Korea, which is designing and building the plant for MGT Teesside on a turnkey basis. MGT Teesside has also awarded a long term service agreement contract to Amec Foster Wheeler for boiler maintenance.

Wood pellets and wood chips will be the main fuel for the plant, which is located near Middlesbrough in the north east of England.

The Tecnicas Reunidas scope of supply, as well as the boiler, also includes balance of plant, including fuel handling and pollution control equipment. The total contract value of the power plant will be close to EUR 700 million of which TR’s contract share is about 70%. It covers the services for engineering, procurement, construction, commissioning and start-up of the power plant, up to commercial operation. TR’s notice to proceed was given on 11 August 2016, following contract signature on 10 August 2016, the first contract in the UK for Tecnicas Reunidas.

MGT Teesside Ltd is owned 50% by Macquarie Group and 50% by the Danish pension provider PKA Ltd. The project was developed by MGT Power, with ownership transferred to MGT Teesside on financial close.

The contractors are working to include local capabilities in the project. For example, SCT owns Darlington-based Whessoe Engineering which is involved with the project.

Biomass discharge services will be provided by PD Ports through the port of Teesport. Teesside-based energy and process industry specialist, the px group, has been engaged to support MGT Teesside during the construction phase alongside Poyry Energy, RPS and Mace.

“The Tees REP project has had to overcome many hurdles in development but we have now successfully reached the next stage despite the difficult financing environment. Support from the local region and a big team effort from Macquarie and all of the different parties involved in the project were instrumental in getting there”, said Ben Elsworth, CEO, MGT Teesside.