Statkraft signs Second Biomass PPA with Eco2 for 40MW Straw-fired Plant

Statkraft has signed a long term Power Purchase Agreement (PPA) with Eco2 for the purchase of power and renewable benefits from Brigg Renewable Energy Plant, a 40MW straw-fired power plant in Brigg, North Lincolnshire.

Once operational, the biomass plant will generate enough energy to cover the total energy consumption of 70,000 households. Straw feedstock for the site will be sourced within a 50 mile radius and is predicted to generate an additional £6m in income for the local agricultural community, plus 50 new jobs.

Statkraft’s 12 year PPA will provide a secure revenue stream for the £90m project – one of the most significant developments in the UK biomass sector since Sleaford Renewable Energy Plant. Sleaford became the first UK biomass project to secure debt finance in five years when the project reached financial close in December 2011. In the same month Statkraft signed a PPA deal with Eco2 for the output of the 38MW site.

Asbjørn Grundt, Executive Vice President, Head of Market Operations and IT at Statkraft, said:
“Statkraft is committed to supporting the development of the UK biomass industry. The Brigg Renewable Energy Plant PPA is a good example of Statkraft’s commitment to work with developers to deliver project after project, fostering relationships with customers that deliver long term value.”

Darren Williams, Commercial Director at Eco2, said:

“We are pleased to have Statkraft as our PPA partner for a second time to support the delivery of this project that represents the most substantial investment in the UK biomass sector since Eco2’s Sleaford Renewable Energy Plant.”

In the future Statkraft is looking to build on its offering to current and future biomass PPA customers by extending the company’s offering to include valued-added services associated with fuel risk mitigation and logistical improvements. These services will be delivered through Statkraft’s newly launched international biomass trading desk which will provide carbon neutral biomass solutions for worldwide buyers in the power, heat and residential markets.

Statkraft is the leading UK Power Purchase Agreement (PPA) provider offering generators products which are tailored to suit their assets and funder’s requirements.

From a standing start in 2010, Statkraft has since delivered PPA agreements for a broad range of customers, from international development companies to community wind farms.

Statkraft offers both short and long term PPAs suitable for all forms of renewable technology and the company’s portfolio spans over 600MW of contracted operational PPAs with wind, biomass and solar generators.

In 2012, Statkraft also launched its Wind Equity Scheme, a co-investment pilot aimed at promoting continued expansion of the business and supporting renewable energy developers who are experiencing financing problems at the consent stage. Developers of medium sized wind farms between 7 and 20MW are eligible for the scheme, which offers equity of up to 40% as well as a bankable Statkraft PPA and professional project management support.

Statkraft International Biomass Trading Desk
Located in the company’s UK headquarters in London, Statkraft’s International Biomass Trading Desk provides carbon neutral biomass solutions for worldwide buyers in the power, heat and residential markets.

Statrkaft’s supply portfolio includes Industrial Wood Pellets, Domestic Pellets / En Plus A1, Agribulks and Industrial Wood Chips, all sourced sustainably from Scandinavia, Iberia and the Baltics.
For more information please visit: statkraftbiomasstrading.com

Pure Energy for the Industrial and Commercial market
Statkraft is the first 100% ‘Pure Energy’ Utility to enter the UK B2B energy supply market. The company is offering 100% REGO backed power to intensive energy users, offering price flexible half hourly metered supplies which enable customers to choose to fix prices when they are low and switch to spot price when market prices are falling.

While the supply business is newly launched in the UK, Statkraft already supplies 20TWh of ‘Pure Energy’ directly to business customers in the Nordic region. For more information about Statkraft, the largest generator of renewable energy in Europe, please visit www.statkraft.com

Source: Statkraft

For more information on: Statkraft