Keppel secures S$341 million contract for second phase of the Greater Manchester Energy-From-Waste Project
11 October 2010
Keppel Seghers Belgium N.V. and Keppel Seghers UK Limited1 (collectively, Keppel Seghers), have secured an Engineering, Procurement and Construction (EPC) contract worth approximately EUR 187.3 million2 (or approximately SGD 341 million), for the second phase of an Energy-From-Waste (EFW) project in the United Kingdom.
The EPC contract, Runcorn II, was awarded by Viridor EFW (Runcorn) Limited, a special purpose vehicle (SPV) owned by Viridor Waste Management Limited (Viridor). Runcorn II will be integrated as part of an earlier project that was announced on 9 April 2009, the Greater Manchester EFW Project (Runcorn I), which is also executed by Keppel Seghers.
Mr Michael Chia, Deputy Chairman and Chief Executive Officer of KIE, said, "We are very happy to deepen our partnership with Viridor through the construction of Runcorn II as it affirms the strength and reliability of Keppel Seghers' waste management technology and EPC capabilities. As we are already executing Runcorn I, we will be able to tap into existing resources and synergise efforts to deliver value through effective solutions for our clients."
Keppel Seghers will provide proprietary EFW technology to Runcorn II and build it. Expected to be completed by 2014/15, Runcorn II will use Keppel Seghers' Water-Cooled Grates, the horizontal boiler design integrated with its Prism technology for enhanced heat recovery and its double dry flue gas cleaning system.
Runcorn II will have the capacity to treat up an additional 375,000 tonnes of solid recovered fuel per year derived from household waste (also known as refuse derived fuel or RDF). The combined Runcorn I and II plant will have a total capacity to treat 750,000 tonnes of waste per year and generate, at full capacity, 70MW of electricity and 51MW of heat. Viridor will supply the waste through a Waste Supply Agreement with the SPV.
Runcorn II is developed and sponsored by Viridor and will, together, with Runcorn I, be one of the largest waste and renewable energy projects in the UK when completed. Runcorn I, which is owned by Viridor, John Laing plc and Ineos Chlor, broke ground in Greater Manchester on 26 August 2010.
The above-mentioned contract is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.
[1] Keppel Seghers Belgium N.V. and Keppel Seghers UK Limited are both wholly-owned subsidiaries of Keppel Integrated Engineering Ltd (KIE).
[2] Contract value is split into GBP 85.6 million and EUR 83.3 million
About Keppel Integrated Engineering Limited (KIE)
KIE is a wholly-owned subsidiary of Keppel Corporation Limited.
The Keppel Seghers group of companies (Keppel Seghers Group), which are owned by KIE, are leading providers of comprehensive environmental solutions ranging from consultancy, design and engineering, technology and construction to operations and maintenance of facilities. Its advanced technology solutions address a wide spectrum of environmental issues such as solid waste, wastewater, drinking & process water, biosolids & sludge.
Keppel Seghers Group has an established track record of involvement in waste-to-energy (WTE) projects in Europe, the Americas and the Asia Pacific for more than 40 years. In water treatment, Keppel Seghers Group has more than 30 years of experience, having implemented more than 350 water and wastewater treatment projects to date.
Currently, Keppel Seghers Group is the only private operator of WTE plants in Singapore. Operating two out of four WTE plants in Singapore, Keppel Seghers Group treats almost half of Singapore's waste that is sent for incineration.
Earlier in April 2009, Keppel Seghers was awarded Runcorn I, an Engineering, Procurement and Construction (EPC) contract worth approximately SGD 518 million) for an EFW Combined Heat and Power Plant, serving the Greater Manchester region in the UK.
The EFW Combined Heat and Power plant is part of a Private Finance Initiative (PFI) waste management project by the Greater Manchester Waste Disposal Authority (GMWDA). Keppel Seghers will provide the technology and also build the plant for Ineos Runcorn TPS Ltd, a special purpose vehicle which was set up for the procurement, operation and maintenance of the plant. Ineos Runcorn TPS Ltd, is owned by Viridor Waste Management Limited, John Laing plc and Ineos Chlor.
For further information, please contact:
Ang Lai Lee (Mr)
Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: 6413 6427 / 8233 9299
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
The EPC contract, Runcorn II, was awarded by Viridor EFW (Runcorn) Limited, a special purpose vehicle (SPV) owned by Viridor Waste Management Limited (Viridor). Runcorn II will be integrated as part of an earlier project that was announced on 9 April 2009, the Greater Manchester EFW Project (Runcorn I), which is also executed by Keppel Seghers.
Mr Michael Chia, Deputy Chairman and Chief Executive Officer of KIE, said, "We are very happy to deepen our partnership with Viridor through the construction of Runcorn II as it affirms the strength and reliability of Keppel Seghers' waste management technology and EPC capabilities. As we are already executing Runcorn I, we will be able to tap into existing resources and synergise efforts to deliver value through effective solutions for our clients."
Keppel Seghers will provide proprietary EFW technology to Runcorn II and build it. Expected to be completed by 2014/15, Runcorn II will use Keppel Seghers' Water-Cooled Grates, the horizontal boiler design integrated with its Prism technology for enhanced heat recovery and its double dry flue gas cleaning system.
Runcorn II will have the capacity to treat up an additional 375,000 tonnes of solid recovered fuel per year derived from household waste (also known as refuse derived fuel or RDF). The combined Runcorn I and II plant will have a total capacity to treat 750,000 tonnes of waste per year and generate, at full capacity, 70MW of electricity and 51MW of heat. Viridor will supply the waste through a Waste Supply Agreement with the SPV.
Runcorn II is developed and sponsored by Viridor and will, together, with Runcorn I, be one of the largest waste and renewable energy projects in the UK when completed. Runcorn I, which is owned by Viridor, John Laing plc and Ineos Chlor, broke ground in Greater Manchester on 26 August 2010.
The above-mentioned contract is not expected to have material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.
[1] Keppel Seghers Belgium N.V. and Keppel Seghers UK Limited are both wholly-owned subsidiaries of Keppel Integrated Engineering Ltd (KIE).
[2] Contract value is split into GBP 85.6 million and EUR 83.3 million
About Keppel Integrated Engineering Limited (KIE)
KIE is a wholly-owned subsidiary of Keppel Corporation Limited.
The Keppel Seghers group of companies (Keppel Seghers Group), which are owned by KIE, are leading providers of comprehensive environmental solutions ranging from consultancy, design and engineering, technology and construction to operations and maintenance of facilities. Its advanced technology solutions address a wide spectrum of environmental issues such as solid waste, wastewater, drinking & process water, biosolids & sludge.
Keppel Seghers Group has an established track record of involvement in waste-to-energy (WTE) projects in Europe, the Americas and the Asia Pacific for more than 40 years. In water treatment, Keppel Seghers Group has more than 30 years of experience, having implemented more than 350 water and wastewater treatment projects to date.
Currently, Keppel Seghers Group is the only private operator of WTE plants in Singapore. Operating two out of four WTE plants in Singapore, Keppel Seghers Group treats almost half of Singapore's waste that is sent for incineration.
Earlier in April 2009, Keppel Seghers was awarded Runcorn I, an Engineering, Procurement and Construction (EPC) contract worth approximately SGD 518 million) for an EFW Combined Heat and Power Plant, serving the Greater Manchester region in the UK.
The EFW Combined Heat and Power plant is part of a Private Finance Initiative (PFI) waste management project by the Greater Manchester Waste Disposal Authority (GMWDA). Keppel Seghers will provide the technology and also build the plant for Ineos Runcorn TPS Ltd, a special purpose vehicle which was set up for the procurement, operation and maintenance of the plant. Ineos Runcorn TPS Ltd, is owned by Viridor Waste Management Limited, John Laing plc and Ineos Chlor.
For further information, please contact:
Ang Lai Lee (Mr)
Manager
Group Corporate Communications
Keppel Corporation Limited
Tel: 6413 6427 / 8233 9299
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it