A combined heat and power plant in southern England is the first large-scale energy from waste facility supported by the country’s Contract for Difference (CfD) mechanism.

The Green Investment Bank plc (GIB) has committed £80m to the construction of the energy from waste facility near Sittingbourne in Kent.
Wheelabrator Technologies
Once complete, the 43 MW plant will supply renewable electricity to the grid and renewable heat to DS Smith’s Kemsley Paper Mill, which produces sustainable packaging for the retail industry. 

The plant is expected to help decarbonise the production process by replacing part of the mill’s gas-fired steam supply and support the UK government’s increasing efforts to cut carbon emissions from the manufacturing sector.

The project developer, Wheelabrator Technologies Inc (WTI), has secured more than £300m of debt from a lending club that includes GIB alongside Barclays, Bank of Tokyo-Mitsubishi UFJ (BTMU), Natixis and Investec.

It is expected to generate up to 154 GWh of renewable electricity annually once fully operational – equivalent to the power consumed by 37,500 homes – and 180 GWH of renewable heat.

The facility is also expected to help reduce greenhouse gas emissions by over 163,000 tonnes per year.

Constructions industrielles de la Méditerranée S.A. (CNIM) has been awarded the engineering, procurement and construction (EPC) contract for the project. WTI will manage the operations and maintenance (O&M) of the plant. 

Waste will be supplied by a number of local and national waste management companies. The plant is expected to come online in 2019.

Greg Clark, Business and Energy Secretary, said: “As well as creating hundreds of construction jobs, this latest investment by the UK Green Investment Bank is an important contribution towards combating climate change and building an energy infrastructure for the 21st century that is cleaner, secure and affordable. It also shows that the green economy continues to attract finance for projects like this.

Shaun Kingsbury, Chief Executive, GIB, said: “Combined heat and power is a prominent feature of the low-carbon energy infrastructure in mainland Europe and Scandinavia and is one of the key technologies that can help British industry become more efficient, competitive and cleaner.