Hadfield secures contract with GIB-backed North Wales plant
Hadfield will provide 45,000 tonnes of biomass fuel to the new 5.4 megawatt (MW) plant in Wrexham, developed by Liverpool-based firm Green Plan Energy, which when operational will generate around 34 gigawatt hours (GWh) of green energy per year.
The wood recycling company, which currently operates in Manchester, Essex and Middlesbrough, recycles 270,000 tonnes of wood every year. It also uses it to produce biomass fuel, which can be used in boilers of varying scales.
The plant will be a combined heat and power (CHP) plant and will have the potential to eventually provide heat to local manufacturing businesses. According to Green Plan Energy, it could also cut greenhouse gas emissions by 6,000 tonnes of CO2 every year, the same effect as taking 2,800 cars off the road.
The project has secured a commitment of £25 million in funding from the Green Investment Bank and investment firm Equitix in May. The Equitix-managed fund Energy Savings Investment (ESI), in which GIB is a cornerstone investor, is investing £12.25 million in the project. An additional £12.75 million of private capital has been mobilised from the parallel Equitix Energy Efficiency Fund (EEEF), a partnership that finances projects aimed at mitigating climate change.
Bester Generaciόn UK, part of the Spanish Bester Group, has been appointed engineering, procurement and construction contractor and has been awarded a long-term operations and maintenance contract, while biomass specialists PBS Energo supplying the plant’s biomass boiler, flue gas cleaning system and electricity generation contract.
Around 60 jobs will be created during construction of the plant, with 15 full-time positions created upon completion.
Heat is ‘a valuable source of energy in itself’
Vicki Hughes, Group Business Development Director for Hadfield Wood Recyclers, said she was delighted they had secured the contract to supply the fuel, which adds to the business’s growing biomass portfolio: “We have been growing the biomass side of our business for a number of years now, to compliment our wood recycling arm which remains as strong as ever.
“We have seen an increasing number of requests to supply plants here and abroad, both small and large scale, and for us the balance is always ensuring we can consistently supply a good spec of material while ensuring it is financially viable for both parties. We are really looking forward to working with everyone on this project.”
Edward Northam, Head of Investment Banking at GIB, added: “Britain’s manufacturing businesses consume huge amounts of heat every year, much of it from non-renewable sources. Dual-purpose plants like Wrexham, which are capable of generating renewable electricity and heat for the benefit of local industry, play an important role in greening the UK economy. Heat isn’t just a bi-product of the electricity generation process; it is a valuable source of energy in itself.”