Source: Helius Energy plc
Following the Helius Energy plc (Helius) announcement on April 14, 2011, of financial close in respect of its 7.2MW Biomass CHP project at Rothes, Morayshire, Helius CoRDe Ltd (CoRDe or the Company) announces that it has entered into the full suite of construction contracts for the project. CoRDe is a joint venture company between Helius Energy plc, Rabo Project Equity BV and the Combination of Rothes Distillers Limited.
Helius will provide Management Services support to the CoRDe project from the commencement of construction and through the operational phases of the project. Key contracts with a value of over £44 million have been awarded to:
• Fichtner Consulting Engineers Ltd, to act as engineering employers representative to assist Helius with the delivery of the project on behalf of the Company;
• Aalborg Energie Technik A/S (AET), for the design, supply, erection and commissioning of the Biomass CHP plant. The plant will condition and burn solid residues from malt whisky distilling and wood fuel. Electricity will be exported to the local electricity network;
• Robertson Northern Ltd, who will undertake civil works, providing the underlying infrastructure for the CHP plant and associated equipment and Principal Contractors role for the duration of the project; and
• Wellman Process Engineering Ltd, who will provide evaporation equipment which will enable the production of Pot Ale Syrup.
AET is close to completion of pre-construction engineering works. Robertson has commenced on-site preparation and full works are expected to start shortly. The completed plant is expected to enter into commercial operation in the first half of 2013.
The project will create approximately 100 jobs during construction and employ around 20 people full-time once operational.
In addition, the following key counter parties have been contracted under long term arrangements:
• Electricity and associated renewable benefits will be sold to npower Ltd and delivered via the local electricity network under a long term Power Purchase Agreement;
• Wood fuel will be supplied from sustainable sources, including from Stobart Biomass Products Ltd; and
• Pot Ale Syrup will be sold by CoRDe through KW Trident (AB AGri Ltd), a subsidiary of Associated British Foods plc.
CoRDe would like to thank the following organisations for their support during the development phase of this project.
• Burges Salmon LLP has provided legal advice to CoRDe since its creation and has assisted in the delivery of a complex transaction structure involving multiple counter-parties; and
• Financial advisors, Ambrian Partners acted as Adviser and Placing Agent to CoRDe Ltd in respect of the CoRDe Project Equity.
The operational plant will deliver greenhouse gas savings of some 46,000 tonnes of CO2 per year compared to UK coal fired stations and will operate at a fraction of the recently announced targets for emissions set in the sustainability criteria under the Renewables Obligations (Scotland) Order.
Adrian Bowles Helius CEO said: "Announcing the implementation of these key contracts so quickly after achieving financial close demonstrates our commitment to delivering this project on time. We are confident that we have the right partners in place to ensure we achieve this."
Helius Energy lands construction contracts for biomass CHP project in Scotland
Source: Helius Energy plc