The construction of a new biomass power plant in the UK has moved a step closer to reality with the signing of a multi-million pound deal between RWE npower renewables and paper maker Tullis Russell.
The two companies have concluded a contract for RWE to supply Tullis Russell’s paper mill in Fife, Scotland with heat and electricity from a new 50 MW cogeneration plant. The plant will be fired by wood from a wide range of sources, says RWE.
RWE’s renewable energy arm RWE Innogy is to invest £200 million in the new plant, and has also secured £8.1 million of funding from the Scottish government. The plant, which will replace an existing coal-fired plant at the Tullis Russell paper mill, will reduce annual carbon emissions by 250 000 tonnes and account for six per cent of Scotland’s renewable generation targets.
“This investment is a major commitment by RWE and is in line with RWE strategy and government policy to reduce CO2 emissions in the UK electricity sector,” said Paul Cowling, Managing Director of RWE npower renewables. “This type of investment would not have been possible without the support from the government’s Renewables Obligation support mechanism.”
The biomass plant will use around 400 000 tonnes of virgin and used wood from a wide range of sources. RWE is currently putting in place contracts with local and national companies for the supply of fuel.
Scotland’s First Minister Alex Salmond said: “This biomass facility will deliver significant economic and environmental benefits for Scotland – I am pleased this project is taking another positive step forward.
“The Scottish government is supporting RWE npower renewables and Tullis Russell in their work to develop this multi-million pound plant at Markinch with a £8.1 RSA grant. This new biomass plant complements the Scottish government’s work to create a greener Scotland and will contribute to our work to cut carbon emissions and increase the use of renewable energy.”
Construction work will begin immediately and the power plant is scheduled to enter operation during 2012. In addition to this project, RWE npower renewables is developing plans for a similar biomass plant in Lincolnshire, UK, with an installed capacity of 73 MW.