FOG-fueled CHP plant under development in London

By Erin Voegele | April 15, 2013

A consortium of companies comprised of iCON Infrastructure Partners II L.P, EEA Holdings Ltd. and 2OC Ltd. is developing a 19 MW biomass combined-heat-and-power (CHP) project in the Beckton region of London. The facility will provide heat and power to Thames Water Utilities Ltd. and National Grid Gas plc under long-term contracts. The proposed project is expected to be operational in early 2015.

Information released by 2OC specifies the company has signed a 20-year deal with Thames water to provide heat and power to its sewage treatment facility in Beckton. The CHP facility will take in biomass fuels derived from fats, oils and greases (FOGs), including tallow and oil waste from food manufacturers and processors. According to 2OC, Thames Water has committed to working with the company to initially supply more than half of its FOG fuel, with the intention of increasing that share over time. FOG clogs sewer systems, causing Thames Water up to £1 million ($1.53 million) per month to remove.

The CHP plant is expected to generate 130 GWh of electricity per year, with 75 GWh of production purchased by Thames Water to run its sewage works and desalination plant. The remainder of the power will be sold to grid. According to 2OC, waste heat will be utilized in an adjacent gas pressure reduction station. Additional heat could be used to heat area housing schemes.

“This is the culmination of many years of hard work from my world class team at 2OC,” said Andrew Mercer, CEO of 2OC. “This is good for us, Thames Water and its customers and the environment. Renewable power and heat sourced in London, generated in London and used in London.”

J Murphy and Sons has been awarded the £70 million contract to build the plant.

iCON Infrastructure is the lead investor on the project, along with EEA Holdings Ltd. and Deutsche Bank. According to information released by iCON Infrastructure, iCON Infrastructure Partners II is its second fund focused on core infrastructure investments in Europe and North America. It owns 77.5 percent of the Beckton CHP facility.

“iCON Infrastructure is delighted to have become the lead investor in the Beckton facility, which is at the heart of London’s infrastructure and benefits from the long‐term support of customers of the highest caliber,” said Paul Malan, senior partner of iCON Infrastructure.

International law firm Watson, Farley & Williams has announced it is advising the London branch of Deutsche Bank AG and Deutsche Bank Luxembourg S.A. as the sole lead arranger and lender on the project financing. “This investment is helping to secure part of London’s green energy-based future, and it was a pleasure to provide advice to Deutsche Bank on such a ground-breaking deal,” said Charles July, lead partner and head of project finance at WFW.