An Engine Management Contract (EMC) service agreement has been signed between Beckton Energy Limited (BEL) and MAN PrimeServ – MAN Diesel & Turbo’s after-sales arm.
The agreement covers a MAN B&W 7K60MC-S engine built by Cegielski, MAN Diesel & Turbo’s Polish licensee, and one MAN AUG Power Turbine TCS-PTG18 at a new combined heat and intelligent power (CHiP) plant. The plant is currently under construction at Beckton in East London by BEL, an indirect subsidiary of iCON Infrastructure Partners II.
The ChiP project is being managed by 2OC Ltd., the company that developed and continues to be a minority shareholder in the project.
A multi-million Euro agreement, the deal is scheduled to run from the start of commercial operations ” expected in 2015 ” for a period of 12 years and covers service and spare parts for the MAN equipment.
Daily operation of the contract will be handled by PrimeServ Copenhagen and PrimeServ UK.
The new plant will use fuels derived from such materials as used fats and cooking oil and will produce 134 GWh of renewable electricity per year, enough power to run Europe’s largest sewage works as well as the UK’s only desalination plant.
Commenting on the deal, Flemming Frederichsen, EMC Sales Manager for PrimeServ Copenhagen, said: “The MAN engine and power turbine simply convert what otherwise would be waste into electricity. This project has high PR value for MAN PrimeServ on account of the positive contribution it makes to the environment.”
Frederichsen continued: “Not least, it provides MAN two-stroke engines the opportunity to get a foot in the door of the power sector. In terms of long-term service contracts, this is a relatively new situation for the company but one which PrimeServ is planning for as part of its strategy for market growth.”
EMCs enable customers to outsource operation support, and the maintenance and technical management of diesel engines and other equipment to MAN Diesel & Turbo. Essentially, the EMC fixes customers’ maintenance costs at a set level that facilitates the advance setting of budgets, with any excessive maintenance costs covered by MAN Diesel & Turbo.