PowerGen and ICI agree on new 250 MW CHP plant

PowerGen plc, the international power company, and ICI today announced an exclusive development agreement for a new CHP station at ICI's largest UK chemical manufacturing site located in Runcorn, Cheshire. This agreement follows a detailed tendering process over the last five months involving a number of major CHP companies.
The station will make an important contribution to the Government's proposed target to grow installed CHP capacity to 10,000 MW by 2010, recognising that CHP can play a vital part in reducing emissions of greenhouse gases including C02.
Capacity of the new plant will be around 250 MW, which in addition to PowerGen CHP's existing contracted portfolio of 540 MW strengthens its position as a major player in the UK CHP market.

Nick Baldwin, PowerGen's Executive Director for UK Operations, said: "This agreement demonstrates PowerGen's continuing commitment to supporting the Government's CHP target and shows its ability to deliver highly efficient, reliable and safe power plants that give our customers competitive edge." "We are very pleased to be working with PowerGen on this exciting new project," commented Adrian Bromley, Managing Director, ICI Chlor-Chemicals.
A state-of-the -art CHP plant is integral to our business strategy of further improving our global competitiveness and providing a cost-base, which will enable future growth and investment. This project is a key part of our positioning to exploit the market opportunities which will arise early in the next millennium." The CHP plant will replace two Runcorn site power stations and will burn hydrogen and natural gas to provide steam and electricity.
PowerGen will fund, construct, own and operate the proposed £ 110 mm plant. The plant will provide steam and demineralised water for Chlor-Chemicals, the UK's largest chlorine manufacturer, and other industrial chemicals businesses based at the Runcorn site.
Construction is expected to commence during spring 2000, following negotiations between the two companies on the contract supply agreement and regulatory approval. It is anticipated that the new plant will come on-stream in the autumn of 2002. PowerGen will employ around 25 people to operate the new power station with approximately 500 involved in the construction phase.

The UK Government is currently considering an increased target of at least 10,000 MWe of CHP capacity by 2010 and will make an announcement on this and its draft CHP strategy within the next year. Current CHP capacity is around 4,000 MW.