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DECC unveils three biomass projects

The first eight projects to be unveiled under the Government’s Contracts for Difference (CfD) scheme include two coal to biomass conversions and a dedicated biomass plant with combined heat and power (CHP), it has been announced.

The Department for Energy and Climate Change (DECC) outlined details of eight renewable electricity projects, including five offshore wind projects as part of its Electricity Market Reform programme.

The schemes are expected to provide up to £12bn of private sector investment by 2020, supporting 8,500 jobs and enough electricity to power over three million homes.

ProjectDeveloperTechnologySize (MW)Location
Drax UnitDraxBiomass conversion645Selby, North Yorkshire
LynemouthLynemouth PowerBiomass conversion420Ashington, Northumberland
TeessideMGT PowerDedicated299Middlesbrough

The eight successful projects have been awarded contracts under the Final Investment Decision. Under CfDs, generators and developers receive a fixed strike price for the electricity they produce for 15 years.

DECC said these contracts are vital to give investors the confidence they need to pay the up-front costs of major new infrastructure projects.

Energy and climate change secretary Edward Davey said: “These are the first investments from our reforms to build the world’s first low carbon electricity market - reforms which will see competition and markets attract tens of billions of pounds of vital energy investment whilst reducing the costs of clean energy to consumers.

“Record levels of energy investment are at the forefront of the Government’s infrastructure programme and are filling the massive gap we inherited. It’s practical reforms like these that will keep the lights on and tackle climate change, by giving investors more certainty.”

The projects’ locations can be seen on this map.

Further CfDs will be made available in the autumn.

Readers' comments (1)

  • Perhaps they will all import biomass from abroad like Drax!

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