Under the contract, Finning UK will design and construct as well as provide maintenance services for the Whitemoor project, which is claimed to be the first of a series of the company’s plants providing clean, high efficiency standby generation capacity.
To be powered by REG’s patented LF100 fuel derived from recycled waste cooking oil, the project is set to go online during the second half of 2014.
REG will initially contribute 15% of the total project cost, which is estimated to be around £6.3m, and Caterpillar Financial will provide funding of 70% once the project becomes operational, while the remainder is being provided by the company.
REG CEO Andrew Whalley said the company will be procuring engines from the world’s largest diesel engine manufacturer to build the Whitemoor project.
"That Finning is prepared to build and operate the plant whilst Caterpillar Financial is providing long-term debt finance to the new facility, demonstrates the commercial application of a process that has taken us many years to perfect.
"We believe the standby generation market will grow strongly, a result of the closure of older electricity generation plant leading to greater intermittency on the UK grid," added Whalley.
