ENGIE selected as partner for decentralised energy generation project in Hull

The developer of a pioneering new 25MW energy-from-waste plant in Hull has appointed ENGIE to operate the £200m facility and purchase the green electricity it generates.

As a leader in decentralised energy generation, ENGIE will provide operational and maintenance expertise to run the new Energy Works plant, as well as providing the power purchase agreement (PPA) that guarantees payments for electricity produced at the facility. With a growing portfolio of decentralised generation assets, either owned or managed, the company is well positioned to deliver integrated energy solutions for local businesses and communities.

Hull-based engineering business Spencer Group is the developer of the Energy Works project. Construction began in January 2016 and the plant is due to be operational in early 2018. It will be the first advanced gasification power plant to be supported by the Government’s Contracts for Difference (CfD) scheme, introduced to stimulate investment in green energy developments. The CfD allocation gives Energy Works a guaranteed price for the renewable energy it exports to National Grid.

ENGIE’s Operation and Maintenance contract will see 26 specialists deployed at the new plant from late 2017. They will manage the smooth running of the facility, from receiving the Refuse Derived Fuel and ensuring its suitability for gasification, through to maintaining all installed equipment and facilitating a consistent output of electricity. The plant will generate enough electricity to power 43,000 homes. 

ENGIE’s long track record of managing energy generation facilities on a large scale, both in the UK and worldwide, was a key factor in its appointment. It is also a well-established, secure and trusted O&M specialist, giving Spencer Group the assurances it needed to appoint the company as its long-term plant operator.

Reflecting its broad capabilities in both energy and services, ENGIE is also a major provider of power purchase agreements (PPAs) for new electricity generation plants, and is one of the few energy suppliers able to offer contracts that work in conjunction with the CfD scheme. It simplifies participation in CfD by managing all payments to and from Energy Works and rolling them into a single transaction each month.

Wilfrid Petrie, CEO of ENGIE in the UK, says: “As the UK moves towards increasing use of renewable energy, with cleaner more efficient generation assets and greater use of waste for energy generation, ENGIE is uniquely placed to provide innovative solutions that combine energy procurement, management and operation for decentralised generation assets.”