November 12, 2007
- Sembcorp a first mover in green energy
- The first Singapore company to own and operate a biomass power plant in the UK
Sembcorp Industries (Sembcorp) marked a significant milestone today in its foray into green energy, with the official opening of a new biomass power plant in the UK. The plant will produce renewable energy using naturally sustainable wood for fuel.
UK Energy Minister Malcolm Wicks MP, who oversees energy policy in the UK including sustainability and the environment, presided over the opening ceremony for the £64 million (approximately S$193 million) Sembcorp Biomass Power Station at the Wilton International manufacturing site in Teesside in the Northeast of England.
The opening strengthens Sembcorp’s position as a first mover in green energy, as it is the first Singapore company to own and operate a biomass power plant in the UK. The plant is itself also the UK’s first large scale wood burning power station, and will use 300,000 tonnes of sustainable wood a year to generate 30 MW of electricity – enough to power 30,000 households. It is also the UK’s first totally wood-burning power plant.
Sembcorp Biomass Power Station will save an estimated 200,000 tonnes of carbon dioxide emissions a year compared with a conventional power station – the equivalent in greenhouse gas reduction terms of taking 67,000 cars off the road. The plant’s operations will also be classed as carbon neutral and will hence avail Sembcorp of unused carbon allowances to trade as carbon credits.
In addition to carbon credits, Sembcorp’s biomass power plant is also set to generate a fresh stream of revenue for Sembcorp from the power sold, as well as from Renewable Obligation Certificates (ROC’s) and Levy Exemption Certificates (LEC’s).
Mr Tang Kin Fei, Sembcorp’s Group President and CEO said, “We are greatly honoured that the UK’s Energy Minister has agreed to open our plant.
“Sembcorp is proud to take this significant step in renewable energy. We are committed to creating a greener future for our business.
“This new biomass power plant strengthens our capabilities in producing power using different fuels. With this plant, Sembcorp now has 3,382 MW of power worldwide in operation and in development.
“This investment is also in line with Sembcorp’s push to provide innovative solutions to serve our customers’ utilities needs, while delivering value to our shareholders.”
Sembcorp’s intention to build the UK’s first 100 per cent wood-to-energy power station was formally announced in March 2005. Work on the station began later that year and following commissioning, full commercial production has commenced.
The wood for the station comes from four separate sources:
a. Recycled wood - this is received, stored and chipped at the UK Wood recycling site at Wilton.
b. Sawmills – the wood comes to the site already chipped as offcuts from sawmills.
c. Managed forests - Sembcorp is working with the Forestry Commission of Great Britain and leading forestry company UPM Tilhill to utilise small roundwood logs from north east forests – items sometimes left on forestry floor after normal tree felling operations.
d. Specially grown energy crops - Sembcorp is working with farmers and other landowners locally for the supply of energy crops, specifically a type of willow known as short rotation coppice. The plant would eventually require the growth of around 7,500 acres of coppice in the region – the equivalent of around 3,000 football pitches.
All the chipped wood is mixed in careful proportions before being fed into the boiler, which encompasses technology already in use in Scandinavia and other areas.
The electricity is being sold to E.ON – the UK’s largest integrated energy company.
The opening of the plant does not have a material impact on the earnings per share and net tangible assets per share of SembCorp Industries for the financial year ending December 31, 2007.
- Sembcorp a first mover in green energy
- The first Singapore company to own and operate a biomass power plant in the UK
Sembcorp Industries (Sembcorp) marked a significant milestone today in its foray into green energy, with the official opening of a new biomass power plant in the UK. The plant will produce renewable energy using naturally sustainable wood for fuel.
UK Energy Minister Malcolm Wicks MP, who oversees energy policy in the UK including sustainability and the environment, presided over the opening ceremony for the £64 million (approximately S$193 million) Sembcorp Biomass Power Station at the Wilton International manufacturing site in Teesside in the Northeast of England.
The opening strengthens Sembcorp’s position as a first mover in green energy, as it is the first Singapore company to own and operate a biomass power plant in the UK. The plant is itself also the UK’s first large scale wood burning power station, and will use 300,000 tonnes of sustainable wood a year to generate 30 MW of electricity – enough to power 30,000 households. It is also the UK’s first totally wood-burning power plant.
Sembcorp Biomass Power Station will save an estimated 200,000 tonnes of carbon dioxide emissions a year compared with a conventional power station – the equivalent in greenhouse gas reduction terms of taking 67,000 cars off the road. The plant’s operations will also be classed as carbon neutral and will hence avail Sembcorp of unused carbon allowances to trade as carbon credits.
In addition to carbon credits, Sembcorp’s biomass power plant is also set to generate a fresh stream of revenue for Sembcorp from the power sold, as well as from Renewable Obligation Certificates (ROC’s) and Levy Exemption Certificates (LEC’s).
Mr Tang Kin Fei, Sembcorp’s Group President and CEO said, “We are greatly honoured that the UK’s Energy Minister has agreed to open our plant.
“Sembcorp is proud to take this significant step in renewable energy. We are committed to creating a greener future for our business.
“This new biomass power plant strengthens our capabilities in producing power using different fuels. With this plant, Sembcorp now has 3,382 MW of power worldwide in operation and in development.
“This investment is also in line with Sembcorp’s push to provide innovative solutions to serve our customers’ utilities needs, while delivering value to our shareholders.”
Sembcorp’s intention to build the UK’s first 100 per cent wood-to-energy power station was formally announced in March 2005. Work on the station began later that year and following commissioning, full commercial production has commenced.
The wood for the station comes from four separate sources:
a. Recycled wood - this is received, stored and chipped at the UK Wood recycling site at Wilton.
b. Sawmills – the wood comes to the site already chipped as offcuts from sawmills.
c. Managed forests - Sembcorp is working with the Forestry Commission of Great Britain and leading forestry company UPM Tilhill to utilise small roundwood logs from north east forests – items sometimes left on forestry floor after normal tree felling operations.
d. Specially grown energy crops - Sembcorp is working with farmers and other landowners locally for the supply of energy crops, specifically a type of willow known as short rotation coppice. The plant would eventually require the growth of around 7,500 acres of coppice in the region – the equivalent of around 3,000 football pitches.
All the chipped wood is mixed in careful proportions before being fed into the boiler, which encompasses technology already in use in Scandinavia and other areas.
The electricity is being sold to E.ON – the UK’s largest integrated energy company.
The opening of the plant does not have a material impact on the earnings per share and net tangible assets per share of SembCorp Industries for the financial year ending December 31, 2007.
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