Sembcorp Industries (Sembcorp) is pleased to announce that it will be developing a new energy-from-waste facility in Teesside, the UK, which will be the Group’s first energy-from-waste facility outside Singapore. The new energy-from-waste facility will be capable of producing up to 49 megawatts of gross power or 190 metric tons per hour of steam, using municipal and commercial waste. The facility will be located at Wilton International, a 770-hectare industrial site which Sembcorp owns, operates and manages in Teesside.
The new facility will be developed by a 40:40:20 joint venture between Sembcorp, SITA UK (part of SUEZ ENVIRONNEMENT) and ITOCHU Corporation.
The facility will utilize up to 450,000 metric tons per year of municipal waste, which would otherwise have gone to landfill, to produce sustainable power and steam. Through this facility, Sembcorp will be able to divert waste from landfill, convert waste into a fuel to produce energy, reduce the consumption of fossil fuels and lower carbon emissions. The energy-from-waste facility will reduce carbon emissions by an estimated 130,000 metric tons per year, compared to landfilling an equivalent amount of waste.
The waste will be supplied by the Merseyside and Halton Waste Partnership under a 30-year contract, which the joint venture won through a competitive bidding process.
To be located at Sembcorp’s Wilton International site, the facility will provide a new income stream and enhance the competitiveness of our UK operations when it becomes operational. Apart from the energy-from-waste facility, the joint venture will also be developing a waste transfer station in Knowsley, Merseyside, to transport the waste by rail from Merseyside to the energy-from-waste plant in Teesside. Both facilities are expected to be operational in 2016, and will be developed under a build, own, operate and transfer arrangement with the Merseyside Recycling and Waste Authority for a period of 30 years.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, “We are very pleased to embark on this project and to develop a new energy-from-waste facility at our Wilton International site, a quality industrial site that offers integrated services, from land, utilities to infrastructure, to customers there. This new energy-from-waste facility will complement our existing assets at the site to generate power and steam competitively, enhancing the competitiveness of our UK operations. It is also a significant milestone as we continue to grow our renewable energy capabilities. We look forward to working closely with our partners and the local authorities on this exciting new project.”
Besides energy-from-waste capabilities, Sembcorp also has biomass and wind power as part of its renewable energy portfolio. Sembcorp now has a renewable energy capacity of over 330 megawatts of power and 250 metric tons per hour of steam in operation and under development around the world, accounting for approximately 5% of its total power and steam portfolio.
The total investment for both the energy-from-waste facility and waste transfer station amounts to approximately £250 million (approximately US$381 million), which will be funded through a long-term non-recourse project finance loan, an equity bridge loan, shareholder loans and equity. Financial close of the project is expected in the second half of 2013 or early 2014.