Chemical partners

ICI and PowerGen have announced an exclusive development agreement for a new combined heat and power (CHP) station at ICI's largest UK chemical manufacturing site in Runcorn, Cheshire. The agreement follows a detailed tendering process over the last five months involving a number of major CHP companies.

Capacity of the new plant will be around 250MWe, which, in addition to PowerGen CHP's existing contracted portfolio of 18 projects - a total capacity of 540MWe and 920MWh, representing a total capital investment of around £400m - strengthens its position in the UK CHP market.

"We are very pleased to be working with PowerGen on this exciting new project," commented Adrian Bromley, managing director, ICI Chlor-Chemicals. "A state-of-the-art CHP plant is integral to our business strategy of further improving our global competitiveness and providing a cost-base, which will enable future growth and investment. This project is a key part of our positioning to exploit the market opportunities which will arise early in the next millennium."

The CHP plant will replace two Runcorn site power stations and will burn hydrogen and natural gas to provide steam and electricity.

PowerGen will fund, construct, own and operate the proposed £110m plant, which will provide steam and demineralised water for Chlor-Chemicals, the UK's largest chlorine manufacturer, and other industrial chemicals businesses based at the Runcorn site.

Construction is expected to commence during spring 2000, following negotiations between the two companies on the contract supply agreement and regulatory approval. It is anticipated that the new plant will come on-stream in the autumn of 2002.


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