North company chosen to test biofuels for power generation

Oct 8 2009 by Karen Dent, The Journal

A TYNESIDE engineering company has been chosen to investigate the use of biofuels in power generation.

Tyne Electro Diesel, which specialises in overhauling, repairing and restoring diesel injection equipment for the marine and power generation industries, is working with Citigen - part of energy company E.ON - on the London-based project.

General manager Peter Robinson said: “They contacted us about a month ago. Previously, they ran power generation equipment on normal fuel, but with the new emissions and green laws, they want to start testing on this.

“Although everyone goes on about it being green, no one knows how biofuel will wear the machine because it doesn’t have the lubrication like diesel.

“It also absorbs water and produces acids so we don’t know how it will effect the engines.

“We are taking measurements and testing the effects. It gives us an insight into how this is going to work for us but it is still an experiment.”

The Newcastle-based company, which employs 13 staff, has been in operation for 20 years and is closely connected to sister company Merlin Diesel Systems in Preston.

Merlin makes many of the engines which are sold worldwide and overhauled by Tyne Electro Diesel.

The Newcastle firm concentrates on engines used in shipping and energy generation and Mr Robinson says its customers are pretty evenly split between the UK and overseas.

“We do work for a lot of the major shipping companies and we do a lot for the power generators, even the nuclear power at Torness, because they have diesel equipment for back-up,” said Mr Robinson.

“Merlin do a lot of automotive and they asked us to get into that market as well. But we have been so busy with the marine work we haven’t got round to that yet. But it will be something to fall back on.”

The trend to send marine engines to onshore specialists rather than mend them at sea has helped to boost Tyne Electro Diesel’s turnover. Last year’s figure stood at £1.7m and the business is aiming to grow that to more than £2m in its current financial year.

Mr Robinson said: “We are looking to slowly expand.

“At the moment we’re flat out but it’s cyclical - then suddenly we might clear everything out, so we tend to traditionally keep the workforce a little bit smaller.”

Staff numbers have been maintained despite the recession – in fact another person has recently been taken on – but the effects of the strong euro and the weak pound have had a greater impact on the business.

Mr Robinson said: “A lot of the spare parts we buy are made in Europe, but, because of the exchange rate, it makes things more expensive. Around 80% of our costs are spare parts.

“The parts are 20% more than normal so it can make it more difficult to make a profit. But at the same time, it can work both ways so it makes our labour rates very competitive.”