ENGIE has been awarded a contract to design and build a new steam-raising energy centre at Huntsman Corporation’s plant in Wilton, Redcar. New steam raising boilers, compressor technology and heat recovery measures such as boiler economisers and variable speed drives on pumps and compressors will be installed. On completion of the project, ENGIE will continue to operate and maintain the plant for a further 15 years.
The project has been developed by the UK Energy Efficiency Investments fund, managed by Sustainable Development Capital Limited (SDCL) in which UK Green Investment Bank plc (GIB) is a cornerstone investor.
Huntsman Corporation is a global manufacturer and marketer of differentiated chemicals and is currently purchasing steam for its Redcar plant from a third party. The new plant is expected to enable Huntsman to meet 100% of its on-site steam requirements at lower cost, whilst also reducing energy consumption and improving resilience & energy security.
The project is predicted to reduce greenhouse gas emissions by up to 28,000 tonnes per annum. As such, it represents the highest impact deal, in terms of carbon emission reductions per £1 invested, so far delivered by the UK Energy Efficiency Investments fund.
Edward Northam, Head of Investment Banking, GIB, commented: “Many manufacturers continue to rely on low-efficiency boilers to service their energy needs. By investing in new technology, the country’s key industries, all of which are energy intensive, will stop wasting energy.”
Paul Rawson, UK Divisional CEO for Energy Solutions, ENGIE, added: “ENGIE is very pleased to be working with Huntsman, SDCL and the Green Investment Bank on this innovative new plant. Through the delivery of the design, build and on-going operation and maintenance of the scheme, ENGIE will provide a resilient, cost effective solution which significantly reduces carbon emissions.”
David Maxwell, Investment Director, SDCL, said: “SDCL are delighted to be working with a world-class team to deliver a major steam generation project to Huntsman. The turnkey solution, which will encompass all elements of the project from design and construction through to the long-term operation and maintenance of the plant, will deliver significant cost savings, energy resilience and long-term price certainty to Huntsman. This project demonstrates that energy efficiency is one of the largest and most cost-effective sources of greenhouse gas emission reductions.”