Teesside green power plant a step nearer

Jun 15 2010 by Karen Dent, The Journal

EUROPE'S first plant to create both biofuel and electricity from waste could be up and running on Teesside within two years after receiving a £7.3m grant towards its £52m construction costs.

The unique INEOS Bio project, planned for Seal Sands, will convert biodegradable household and commercial waste into carbon-neutral biofuel for cars and renewable electricity for domestic and commercial use.

It is designed to produce 24,000 tonnes of biofuel annually – enough for around 250,000 vehicles – and generate more than 3MW of clean electricity – sufficient for 6,000 homes – using 100,000 tonnes of biodegradable household and industrial waste.

The plant came a step closer after receiving approval of a £7.3m grant from the Department for Energy and Climate Change (DECC) and One North East. The DECC is putting £4.5m towards the next phase of the project with £2.8m coming from One North East, including £1.8m through the two-year, £60m Tees Valley Industrial Programme which was set up to support the area’s transition to low carbon and advanced manufacturing.

INEOS Bio is now aiming to commission the facility by 2012, creating around 350 construction jobs and more than 40 permanent skilled roles.

An associated bio-refinery expansion, to be operational by 2015, would also help to meet the UK’s renewable energy targets for transport fuel, power and heat set for 2020.

INEOS Bio chief executive Peter Williams said: “Using our technology, the waste that is collected from homes and offices and otherwise thrown away, can be re-cycled into clean biofuel for cars and renewable electricity for homes and industry. This grant from One North East and the Department for Energy and Climate Change, together with the considerable support that we are receiving from organisations such as the National Non Food Crop Centre, is enabling us to make progress with our commercialisation plans in the North East of England.”

INEOS Bio – part of the INEOS, the world’s third biggest chemicals company – uses thermo-chemical and bio-chemical technologies to produce biofuel from a range of different biomass materials.

The technology harnesses anaerobic fermentation and converts the gases produced into bioethanol, while diverting rubbish from landfill.

One North East chairman Margaret Fay said: “INEOS Bio is a fantastic example of the forward-thinking companies which are bringing new jobs to North East England and this is another major investment for the Tees Valley Industrial Programme.

“Unique projects like this are placing our region and the UK at the forefront of low carbon economy and this revolutionary new plant has the potential to provide us with a solution for our waste and a significant renewable energy resource for many years to come.”

Stan Higgins, chief executive of the North East Process Industry Cluster (NEPIC), said his group had worked with the INEOS Bio project team to bring the plant to the region.

Dr Higgins said: “This is a big triumph for the North East Process Industry, which continues to rejuvenate itself through identifying and supporting innovative new projects such as this.

“It also shows how NEPIC, One North East and partners such as TVU can effectively work together to project our region effectively to these high technology industries.”

The INEOS BioEnergy plant has received planning permission from Stockton Council and no objections have been raised for the full bio-refinery. INEOS said the process was now subject to the normal final agreements such as contractual arrangements for its construction.