Margam Green Energy Plant to be operational in early 2017

By Erin Voegele | February 02, 2015

Eco2 Ltd. recently announced the sale of a proposed 40 MW biomass power project to Glennmont Partners as part of a £160 million ($240.48 million) deal. The project, known as the Margam Green Energy Plant, will be located near Margam, South Wales, in the U.K. Engineering is underway, with constructed expected to be complete by the second quarter of 2017.

The project was purchased by Glennmont Partners on behalf of its dedicated clean energy fund, Glennmont Clean Energy Fund Europe II. Further funding will be provided by Deutsche Bank AG, supported by credit agency Eksport Kredit Fonden.

Babcock & Wilcox Co.’s Denmark-based subsidiary Babcock & Wilcox Vølund A/S has been awarded a $200 million contract to engineer, procure and operate the plant. B&W’s consortium partner Interserve Construction Ltd. will build the plant, while Eco2 Management Services Ltd will manage the project on behalf of the new owner.

“Eco2’s operations business will now be managing over 1 million tonnes of straw and wood every year.  We are proud to be entrusted with managing the construction and operation of our developments on behalf of their new owners,” said Darren Williams, commercial director at Eco2. “We look forward to ensuring that the Margam Green Energy Plant is a success for its new owners.”

According to Babcock & Wilcox, the facility will be designed to burn 335,000 tons of wood waste annually. It will also be capable of using municipal solid waste as a fuel source in the future.  The plant will feature advanced environmental controls designed by B&W Vølund and its Götaverken Miljö AB subsidiary, including a dry flue gas desulfurization system (dry FGD), fabric filter baghouse, continuous emissions monitoring equipment and an advanced DynaGrate dynamic fuel combustion system.

Stobart Group Ltd. has signed a 14-year, index-linked fuel supply agreement for the Margam plant. According to the company, the agreement is the largest supply contract by volume it has entered into.

Under the contract, Stobart will source, process and supply 250,000 metric tons per year of recycled wood waste, equating to 3.5 million tons of biomass over the life of the agreement. Stobart Energy’s transport business will be responsible for delivering 250 loads of fuel per week to the plant.

“This is fifth of our biomass developments to be funded in the UK.  It is the second project in South Wales and the second project that we have completed with the partners at Glennmont,” said David Williams, CEO of Eco2. “We are delighted that the quality of our work and the calibre of our people encourages such repeat business.  Eco2 continues to set the standard as the leading biomass developer in the UK and beyond.”