Big Deal for FCC

March 2019

FCC Environment in £480m EfW project with Tata

Copenhagen Infrastructure Partners (CIP) and FCC Environment have announced that £480 million in funding has been secured to construct a 600,000 tonne capacity EfW plant in Lostock, Cheshire.

The funding was agreed between the two companies – through a joint venture called the ‘Lostock Sustainable Energy Plant Limited’ (LSEP) – and Tata Chemicals Europe, which previously headed up the project.

Under the agreement, the LSEP will own, construct and operate the facility, but Tata Chemicals Europe will “remain a key long term participant”.

The deal will also see CIP own 60% of the plant, while FCC will own the remaining 40% and also source the waste for the facility.

The plant is scheduled to commence operations in the end of second quarter of 2023.

Milestone

Commenting on the deal, Paul Taylor, group chief executive of FCC, said: “Today is a milestone for the waste treatment industry here in the UK which is facing a severe capacity gap for the treatment of unrecyclable residual waste.

“We already successfully operate a number of plants here in the UK generating some 102 MW of green energy with a new plant due to come on stream in Edinburgh later this summer. So this development forms an important part of our strategy to continuously invest in the waste related infrastructure that is crucial for this country’s ability to process waste and power homes across the UK both today and in the future. We also maintain our strategy to strengthen FCC’s UK position as EfW owner, supplier and UK operator.”

2012 consent

The Lostock energy from waste plant (EFW) will be developed in accordance with the planning consent secured by Tata in 2012, and will replace the old coal-fired power station it had on the site.

The two-boiler line project will be built by a consortium led by CNIM, the French industrial engineering contractor, and the milestone marks the green light for them to initiate manufacturing and construction.

The construction process will consist of two phases, starting with a 15-month enabling works program followed by a 3-year building phase including six months of commissioning.

Tata Chemicals Europe said the plant will also become an “important long-term customer” for TCE’s sodium bicarbonate, which will be used in the treatment of the flue gas emissions from the EFW.

Fraser Ramsay, TCE’s project director, said: “We’re delighted to have reached agreement with LSEP for them to fund, own, build and operate the Lostock Energy from Waste Plant.  We recognised the need for strong third-party support to take this project forward and, through this agreement, have secured leading energy from waste expertise to make the plant a reality.”

Mr Ramsay added: “At £480m, this is one of the largest investments at the Lostock site since soda ash manufacturing commenced in 1907 and continues a rich industrial history of innovation and job creation in Northwich.

“We hope, by working with industry leading organisations, that concerns previously expressed about the project by members of the local community will be alleviated.”