PX to Run U.K. Waste Fat, Oil-to-Power Plant From Drains

PX Group, a U.K. engineering company, won a five-year contract to operate a 70 million-pound ($108 million) plant in London that will use waste fat and oil from the capital’s drains to generate electricity.

About 40,000 blockages a year are caused by fat poured down London’s drains, Stockton-on-Tees-based PX said today in announcing the deal. Thames Water Utilities Ltd. will buy part of the output to run its Beckton sewage works and a nearby desalination plant. Remaining power will be sold to the grid.

The facility, currently under construction, will have a capacity of 18 megawatts, producing enough clean electricity to power 40,000 homes, PX said in an e-mailed statement. The project is expected to start working in early 2015. PX declined to disclose terms of its contract.

“Sourcing renewable power, hedged from the price fluctuations of the non-renewable mainstream power markets, while helping tackle the ongoing operational problem of ‘fatbergs’ in sewers is a win-win scenario,” Piers Clark, commercial director for Thames Water, said in the statement.

2OC Ltd. is developing the facility, which is being financed by a group led by iCON Infrastructure LLP, according to the statement.

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