Construction of one of the world’s largest CHP plants has begun with news that developer E.On UK has signed a deal with National Grid’s LNG terminal on the Isle of Grain – located in the Thames estuary – for the supply of heat.
The £500 million ($1 billion) 1275 MW natural gas fired power station will be built under a turnkey contract by Alstom. The station will be powered by three Alstom GT26 gas turbines and will export up to 340 MW of heat to National Grid’s nearby LNG terminal where it will be used to re-gasify the LNG. National Grid had been using natural gas directly to provide heat to the LNG terminal.
Work started on the new power plant at Grain in May, with commissioning expected late in 2009. Work on the CHP phase will start in 2008, for completion in 2010.
The CHP plant is exempt from the UK’s Climate Change Levy, benefits from EU Emissions Trading and may qualify for Enhanced Capital Allowances (ECA), although there is currently uncertainty about this.
Visualisation of E.On’s new GT26 based Isle of Grain three-module cogeneration facility, which will supply heat for LNG regasification