RWE npower Cogen has announced plans to build a 45 MW biomass CHP plant at Markinch in Glenrothes, Scotland.
The new facility will supply steam and electricity to the Tullis Russell Papermakers paper mill under a long-term contract. Tullis Russell's paper mill currently uses a coal-fired plant to provide process steam and electricity.
npower Cogen and Tullis Russell hope to secure all necessary approvals by the end of 2008 with the CHP plant entering operation in 2011.
An £8.1 million (US$16 million) Regional Selective Assistance grant from the Scottish government has been awarded to help fund the project.
Phil Piddington, head of npower Cogen said, 'Our plans to build a CHP plant at the Tullis Russell paper mill form an important part of our wider strategy of reducing our carbon intensity, through investment in lower or zero carbon power generation sources.' The project will add 45MW of CHP capacity to RWE npower's existing CHP portfolio which supplies a total of 2000MW of energy from 11 plants on key customer sites.
Graham Meeks, director of the Combined Heat and Power Association commented: 'This project points the way forward for the delivery of our stretching renewables targets. Biomass helps to diversify our pattern of renewable energy supply, and using efficient CHP technology means that our limited resources of this fuel can go that much further, delivering valuable power and heat for the benefit of our manufacturing industries.'