The Port Clarence Energy is situated on the banks of the River Tees in North East England. The project will provide 40MW of Combined Heat and Power (CHP) enabled renewable energy to the UK energy market through the combustion of waste wood and will have the capacity to consume around 300,000 tonnes of waste wood per year. The waste wood used to fire the power station will be diverted from landfill sites. The feedstock will be provided by Stobart Biomass Products Limited; specialists in the provision of renewables logistics.
The project was developed as a joint venture between Eco2 Ltd and Temporis Capital LLP, who both specialise in the building and operating of renewable energy projects. The biomass plant was purchased in September 2015 by Glennmont Partners on behalf of its dedicated clean energy fund, Glennmont Clean Energy Fund Europe II. The power station was financed with equity from a fund managed by Glennmont Partners and debt provided by Deutsche Bank and Danske Bank, supported by EKF, the export credit agency of Denmark.
Port Clarence Energy Ltd was jointly owned by Eco2 Developments Limited (which has the same shareholders as Eco2), Temporis Limited and the principal partners of Temporis. The project was jointly developed by Eco2 Ltd and Temporis Capital LLP. The team developed the Project, securing planning consent, negotiating a lease option and obtained a grid connection offer from Northern Power Grid.
The plant is being built by Babcock & Wilcox Vølund A/S with the civil engineering to be undertaken by Lagan Construction. Eco2 has a Management Services Agreement for construction and operation of the plant on behalf of the owners.
This project will have a significant positive impact on one of the most economically deprived areas of Britain. We have taken an empty brownfield site and laid the foundations for it to be turned back into production, creating hundreds of jobs. We are delighted with the backing that has been shown to this development by the local authority, Stockton-on-Tees Borough Council, and local land-owner Able Group.
This project had a particularly tight deadline due to the impending closure of the Renewables Obligation (RO) scheme on 31 March 2017. To allow projects such as Port Clarence, a grace period for biomass projects with CHP was introduced and this period extends the timeframe by which such plants have to operate to 30 September 2018. Qualification for a grace period was subject to an application to OFGEM and PCEL was required to satisfactorily demonstrate the status of its planning consent, grid connection offer, CHP certification, land agreements, funding capability and the ability to generate before 31 March 2017 in order to be successful This added additional time pressure to Eco2 as it meant that the project had to be commissioned by September 2018.