Keppel seals S$341mln deal for UK energy-from-waste project

Runcorn plants to have capacity to treat 750,000 tonnes of waste yearly and generate 70MW electricity.

Keppel Seghers Belgium N.V. and Keppel Seghers UK Limited1 (collectively, Keppel Seghers), have secured an Engineering, Procurement and Construction (EPC) contract worth approximately EUR 187.3 million2 (or approximately SGD 341 million), for the second phase of an Energy-From-Waste (EFW) project in the United Kingdom, according to a Keppel report.

The EPC contract, Runcorn II, was awarded by Viridor EFW (Runcorn) Limited, a special purpose vehicle (SPV) owned by Viridor Waste Management Limited (Viridor). Runcorn II will be integrated as part of an earlier project that was announced on 9 April 2009, the Greater Manchester EFW Project (Runcorn I), which is also executed by Keppel Seghers.

Mr Michael Chia, Deputy Chairman and Chief Executive Officer of KIE, said, "We are very happy to deepen our partnership with Viridor through the construction of Runcorn II as it affirms the strength and reliability of Keppel Seghers' waste management technology and EPC capabilities. As we are already executing Runcorn I, we will be able to tap into existing resources and synergise efforts to deliver value through effective solutions for our clients."

Keppel Seghers will provide proprietary EFW technology to Runcorn II and build it. Expected to be completed by 2014/15, Runcorn II will use Keppel Seghers' Water-Cooled Grates, the horizontal boiler design integrated with its Prism technology for enhanced heat recovery and its double dry flue gas cleaning system.

Runcorn II will have the capacity to treat up an additional 375,000 tonnes of solid recovered fuel per year derived from household waste (also known as refuse derived fuel or RDF). The combined Runcorn I and II plant will have a total capacity to treat 750,000 tonnes of waste per year and generate, at full capacity, 70MW of electricity and 51MW of heat. Viridor will supply the waste through a Waste Supply Agreement with the SPV.

Runcorn II is developed and sponsored by Viridor and will, together, with Runcorn I, be one of the largest waste and renewable energy projects in the UK when completed. Runcorn I, which is owned by Viridor, John Laing plc and Ineos Chlor, broke ground in Greater Manchester on 26 August 2010.