Construction of one of the world’s largest CHP plants has begun with news that developers E.ON UK have 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) 1,275 MW 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 to warm the LNG terminal.
Commissioning is expected late in 2009.
The CHP plant is exempt from the UK’s Climate Change Levy, benefits from EU Emissions Trading and Enhanced Capital Allowances (ECA), although there is currently uncertainty as to whether this project will qualify for ECAs.