U.K. Bioenergy Group Adds 25 MW Waste-to-Power Plant in Hullby
Project first waste-to-power to tap Contract for Difference
Plant marks group's second waste-to-power project since Oct.
Bioenergy Infrastructure Group obtained finance for a 25-megawatt waste-to-power plant in Hull that’s the first in the U.K. to include a Contract for Difference with the government to smooth out prices for the power it generates.
The group was formed by four investors on Oct. 1 with the aim to become the nation’s biggest producer of biomass electricity, Bioenergy said on Monday. The Energy Works Hull project is a 200 million-pound ($303 million) plant on a 7.5-acre site and joins the 21.5 megawatt Ince Biopower wood-burning power plant in the county of Cheshire, which was opened last month. It will produce enough power for 43,000 homes.
Bionenergy secured a 15-year power purchase agreement for the Energy Works as well as a contract for difference for the same duration. A CfD is an agreement that sets a so-called strike price for power over the duration of the deal, giving developers certainty over what their plants will earn instead of making them depend on market prices.