New CHP project will enhance Wilton site utilities

SembCorp Utilities UK is to invest GBP 36million in a new combined heat and power project to enhance utility supplies at the Wilton International site

SembCorp Utilities UK is to invest GBP 36million in a new combined heat and power (CHP) project to enhance its supply of utilities at the Wilton International site.

SembCorp has signed an agreement with Aker Kvaerner Engineering Services to provide the engineering design, construction and commissioning work for the CHP project, which will embrace a gas turbine and heat recovery steam generator.

The Aker Kvaerner contract value is GBP26million.

The unit will be capable of generating 40MW of electricity - enough to power 40,000homes - which will be used by a range of on-site customers.

It will also supply up to 162 tonnes per hour of steam to the site distribution system at Wilton International on Teesside, one of the the UK's most important manufacturing locations.

Paul Gavens, Managing Director and Executive Vice President of SembCorp Utilities UK, which employs around 630 people, said: "We are absolutely delighted to be making this move at this exciting time for SembCorp and the Wilton International site in general.

It is a huge vote of confidence in our people and our operations by the board of SembCorp Utilities and brings the total invested by the company since buying the business in 2003 to more than GBP110million".

The new project will supply the recently announced Ensus bio-ethanol plant and is the third major SembCorp investment in four years.

It follows a GBP20million CHP plant, also built by Aker Kvaerner, at Wilton Power Station in 2004, and Wilton 10, the GBP62million wood-fuelled biomass power station due to start operations later this year.

Dave Ley, President of Aker Kvaerner Engineering Services, added, "Aker Kvaerner is very pleased to have the opportunity to build upon its long-standing relationship with SembCorp Utilities UK.

We have core capabilities within the energy sector and specific project experience with SembCorp to draw upon.

Our project team look forward to using our local presence, combined with our worldwide engineering expertise, to deliver an optimised technical solution to SembCorp Utilities UK".

Work will start immediately and the CHP plant is expected to be operational by the end of 2008.

The project is likely to sustain around 85 jobs during the construction period.

The success and knowledge of the original CHP plant built for SembCorp at Wilton in 2004 and an excellent relationship were key factors in this new contract award to Aker Kvaerner.

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