Pöyry gains technical owner’s engineer services deal for UK biomass power plant

22 August 2016 (Last Updated August 22nd, 2016 18:30)

Pöyry has been awarded the technical services aspect of PX Engineering Consultants' technical engineering contract with MGT Power Ltd for the 299MWe biomass CHP Plant, which is being developed in Teesport, UK.

Pöyry has been awarded the technical services aspect of PX Engineering Consultants' technical engineering contract with MGT Power Ltd for the 299MWe biomass CHP Plant, which is being developed in Teesport, UK.   

The financial value of the order has not been released.

In the early phase of project development, Pöyry offered MGT with front-end engineering design and in the final stages up to financial close, technical support for tendering and negotiation of the EPC contract.

The new assignment to Pöyry in the implementation phase comprises assistance in design review and construction supervision along with technical support during erection, commissioning, testing and handover, as well as support during the warranty period.

"The plant will use modern circulating fluidised bed technology to generate enough electricity for around 600,000 households."

MGT Power is UK-based firm focusing on biomass projects that make use of sustainable forestry as fuel supply.

MGT Teesside CEO Ben Elsworth said: "The Tees REP project has had to overcome many hurdles in development but we have now successfully reached the next stage despite the difficult financing environment. Support from the local region and a big team effort from Macquarie, PX Group, Pöyry, RPS and Mace were instrumental in getting there.

"We can't wait to get work started on site and make this project a huge success."

PX Group CEO Ian Clifford said: "We are delighted to have been selected to support MGT on this prestigious biomass project.

"The fact that the plant is on our doorstep, that it increases our involvement in the renewable energy sector and endorses our engineering and project management expertise, makes it particularly satisfying."

Pöyry's energy business group renewables head for UK Julian Scutter said: "The signing of financial agreements is a great success for the renewable energy industry and paves the way for the world's largest new-build biomass combined heat and power (CHP) plant to be constructed in the UK. 

"The plant will utilise modern circulating fluidised bed technology to generate 299MWe of electricity, supplying the equivalent of 600,000 households, and will be one of the most important thermal power plant build projects for decades." 

Tees Renewable Energy Plant (Tees REP) is being built with an investment of around £650m, and will use sustainable biomass fuels, from the UK and globally to produce around 2.4TWh of power per annum.

The order will be included by Pöyry in third quarter of fiscal year 2016.