Fortum has signed a 10-year operation and maintenance (O&M) agreement with MGT Teesside Ltd in the UK. The agreement covers the operation and maintenance services of a new 299 MW biomass-fired combined heat and power plant to be located in North-East England. The construction of the power plant is due to start immediately and be completed by 2020.
“This significant O&M agreement is well in line with our vision to be the forerunner in clean energy. Fortum has long experience on biomass-fired combined heat and power plants. We are happy to give our customers access to our expertise by providing O&M services and that way support the increase of renewable energy production in the UK,” says Antti Malve, Head of Sales, Expertise Sales, Fortum.
“We are happy to start co-operation with Fortum in our project. Fortum can offer us a world-class operation and maintenance concept and valuable experience as an owner and operator of biomass-fired power plants,” says Ben Elsworth, CEO of MGT Teesside.
The parties have agreed that they will not disclose the value of the agreement.
Fortum is a user of biomass in its own operations in Finland, Sweden, the Baltic countries and Poland. In 2015, altogether 5.1 TWh of biomass (2.6 million m3) was used in Fortum’s power and heat plants. Biomass accounts for one fourth of Fortum’s heating fuels in the EU area.
For Fortum the Teesside agreement means continuation of a long history of O&M services in the UK. Prior to this agreement Fortum has been involved in 13 different O&M contracts in the country.