The U.K. Department for Business, Energy and Industrial Strategy has announced Contracts for Difference (CfD) have been awarded to 11 new projects, including two dedicated biomass power plants with combined-heat-and-power (CHP).
The two dedicated biomass with CHP projects include the Grangemouth Renewable Energy Plant, under development by Grangemouth Renewable Energy Ltd., and Rebellion, under development by Rebellion Biomass LLP.
Located in Scotland, the 85 MW Grangemouth plant is expected to provide power to 148,880 homes. The plant was awarded a strike price of £74.75 ($99.32) per MWh with delivery expected in 2021-’22. The smaller-scale Rebellion project is based in England and will have a capacity of 0.64 MW and is expected to provide power to 1,120 homes. The Rebellion project was also awarded a strike price of £74.75 per MWh with delivery expected in 2021-’22.
CfDs were also awarded to six projects featuring advanced conversion technologies and three offshore wind projects. On a combined basis, the 11 projects are expected to generate more than 3 GW of electricity, enough to power 3.6 million homes.
“We’ve placed clean growth at the heart of the Industrial Strategy to unlock opportunities across the country, while cutting carbon emissions,” said Minister for Energy and Industry Richard Harrington. “The offshore wind sector alone will invest £17.5bn in the UK up to 2021 and thousands of new jobs in British businesses will be created by the projects announced today. This government will continue to seize these opportunities as the world moves towards a low carbon future, and will set out ambitious proposals in the upcoming Clean Growth Plan.”
A statement released by the U.K. Renewable Energy Association indicates the advanced conversion technology projects involve the gasification or pyrolysis of waste. Projects classified as advanced conversion technologies that were awarded CfDs include the 15 MW Drakelow Renewable energy Center, under development by Future Earth Energy (Drakelow) Ltd.; the 0.05 MW Station Yard CFD 1 project, under development by DC2 Engineering Ltd.; the 25.5 MW Northacre Renewable Energy Centre, under development by Northacre Renewable Energy Ltd.; the 10.2 MW IPIF Fort Industrial REC, under development by Legal and General Prop Partners (Ind Fund) Ltd.; the 5.56 MW Blackbridge TGS 1 Ltd. project, under development by Think Greenergy TOPCO Ltd.; and the 8 MW Redruth EfW project, under development by Redruth EFW Ltd. The first five advanced conversion technology projects were awarded strike prices of £74.75 per MWh, while the Redruth EfW project was awarded a strike price of £40.00 per MWh.
“The latest renewables auction show huge price reductions across the board, with offshore wind, energy from waste and biomass clearing at prices from £57.50-£74.75,” said James Court, head of policy and external affairs at the U.K. REA. “These results show that renewables are now the most cost effective form of any energy generation which can future proof both the U.K. grid and provide sustainable new jobs in the U.K.”