Sembcorp to Develop its First Overseas Energy-from-Waste Facility in the UK
April 19, 2013
- Project marks an important milestone in the Group's plan to grow its renewable energy capabilities
- Waste supply secured under a 30-yr contract
Sembcorp Industries (Sembcorp) is pleased to announce that it will be developing a new energy-from-waste facility in Teesside, the UK, which will be the Group’s first energy-from-waste facility outside Singapore. The new energy-from-waste facility will be capable of producing up to 49 megawatts of gross power or 190 tonnes per hour of steam, using municipal and commercial waste. The facility will be located at Wilton International, a 770-hectare industrial site which Sembcorp owns, operates and manages in Teesside.
The new facility will be developed by a 40:40:20 joint venture between Sembcorp, SITA UK (part of SUEZ ENVIRONNEMENT) and ITOCHU Corporation.
The facility will utilise up to 450,000 tonnes per year of municipal waste, which would otherwise have gone to landfill, to produce sustainable power and steam. Through this facility, Sembcorp will be able to divert waste from landfill, convert waste into a fuel to produce energy, reduce the consumption of fossil fuels and lower carbon emissions. The energy-from-waste facility will reduce carbon emissions by an estimated 130,000 tonnes per year, compared to landfilling an equivalent amount of waste.
The waste will be supplied by the Merseyside and Halton Waste Partnership under a 30-year contract, which the joint venture won through a competitive bidding process.
To be located at Sembcorp’s Wilton International site, the facility will provide a new income stream and enhance the competitiveness of our UK operations when it becomes operational. Apart from the energy-from-waste facility, the joint venture will also be developing a waste transfer station in Knowsley, Merseyside, to transport the waste by rail from Merseyside to the energy-from-waste plant in Teesside. Both facilities are expected to be operational in 2016, and will be developed under a build, own, operate and transfer arrangement with the Merseyside Recycling and Waste Authority for a period of 30 years.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, “We are very pleased to embark on this project and to develop a new energy-from-waste facility at our Wilton International site, a quality industrial site that offers integrated services, from land, utilities to infrastructure, to customers there. This new energy-from-waste facility will complement our existing assets at the site to generate power and steam competitively, enhancing the competitiveness of our UK operations. It is also a significant milestone as we continue to grow our renewable energy capabilities. We look forward to working closely with our partners and the local authorities on this exciting new project.”
Besides energy-from-waste capabilities, Sembcorp also has biomass and wind power as part of its renewable energy portfolio. Sembcorp now has a renewable energy capacity of over 330 megawatts of power and 250 tonnes per hour of steam in operation and under development around the world, accounting for approximately 5% of its total power and steam portfolio.
The total investment for both the energy-from-waste facility and waste transfer station amounts to approximately £250 million (approximately S$473.5 million), which will be funded through a long-term non-recourse project finance loan, an equity bridge loan, shareholder loans and equity. Financial close of the project is expected in the second half of 2013 or early 2014.
Sembcorp’s equity investment for this project, comprising equity and shareholder loans, is £21.9 million (approximately S$41.5 million), which will be funded through the Group’s internal resources. The investment and waste contract are not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.
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ABOUT SEMBCORP INDUSTRIES
Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities of over 5,800 megawatts of gross power capacity and over seven million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in urban development.
In the UK, Sembcorp owns the 770-hectare Wilton International industrial site and provides energy, water and on-site logistics to customers at the site and power to the grid. The company is also the pioneer of biomass power production in the UK with the country’s first large-scale wood-fuelled renewable energy project, the Sembcorp Biomass Power Station.
The Group has total assets of over S$12.5 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices as well as the Dow Jones Sustainability Asia Pacific Index.
Note to Editors:
Please refer to the company as “Sembcorp” (with “S” in upper case and “c” in lower case), or “Sembcorp Industries” in full. Please also note that “Sembcorp” is not an abbreviation of “Sembawang Corporation” but a brand name in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.