£250m new power station at North Killingholme aims to generate in 2021
31st March 2017
DEVELOPERS behind a "nationally significant" new gas-fired power station at North Killingholme are ramping up activity ahead of a potential commissioning in 2021.
C.Gen Killingholme is planning to enter the £250 million project into the 2017 Capacity Market Auction, with 35 permanent jobs and hundreds in construction on the table.
The 470MW combined cycle gas turbine station is being lined up for the December bidding process, which allocates contracts to supply the National Grid with electricity in future years.
It comes after C.Gen, which has the same shareholders as neighbouring C.Ro Ports Killingholme – Belgian entity Cobelfret – recently bought Centrica's mothballed North Killingholme power station. A total of 22 years of operations at the 660MW plant were brought to a close at that site in March last year, with the company confirming a significant investment at its remaining Stallingborough and Brigg sites.
Centrica's former operation will be demolished in the next 12 to 18 months, giving C.Gen secure connections to the electrical and high pressure gas grids. It also provides "the opportunity to develop other new energy projects" on the 50 acre site.
Florent Maes, C.Gen Killingholme's project director said: "We are now in a good position with the project and we will be working hard over the coming months to be fully prepared for the Capacity Market Auction in December. If we are successful in the auction, we could expect to start the construction in 2018 to ensure timely completion and commercial operation by 2021."
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The plant was granted a Development Consent Order by the Secretary of State for Energy and Climate Change in September 2014.
Leading global organisation Credit Suisse has been appointed to assist with the financing of the project, with Uniper – the traditional fuel utility spin-off of from German giant E.on – appointed as the project's engineer. It also runs the former E.on plant further inland on Chase Hill Road, which won a reserve supply contract for 2017, having been earmarked for closure.
The tender process for the main construction contract for C.Gen has recently begun too.
Originally brought forward more than 10 years ago, serious consideration was given to clean coal with carbon capture and storage technology, with both fuel-sources flagged up in 2012 and achieving consent.
However, Government has since set a 2025 deadline to end coal-fired energy production with other carbon capture and storage projects, such as White Rose at Drax, also shelved as funding was pulled.
Constituency MP, Cleethorpes and Immingham's Martin Vickers, said: “It is a big investment in the area, with construction jobs in the short term and in the longer term a number of highly skilled technical jobs being created.
“I am very happy to support them and they know where to find me, as we have had previous meetings.”
News Courtesy: www.humberbusiness.com