Fat power plant causes significant loss for London-based engineers

The Murphy Group, a London-based civil engineering group, have taken a £9m financial hit due to difficulties associated with a fat-fired combined heat and power plant.

The project in Beckton, East London saw problems beset it as a result of design, cost escalation, supply chain and engine related technical breakdowns, according to a report in the Construction Enquirer.
Murphy Group
In the latest annual accounts, company director Bernard Murphy revealed the significant loss on the project, which over shadowed an otherwise satisfactory performance at the UK business.He said that the group was reviewing its entitlement for recovery of sums but had stuck to its policy of booking losses as they emerged.

The £70m engineer, procure and construct contract was awarded by new generation green utility company 2OC following a competitive tender two and a half years ago.

At the time, Murphy said the combined heat and intelligent power project, which was designed by Jacobs to burn fats retrieved from Thames Water’s sewers, was complex and challenging with stringent timescales and multifaceted interfaces.

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