‘We came to the UK because it looked like there was a very stable direction of travel from the government in terms of supporting green industry.
‘We’re a big company, we’ve got a big balance sheet, we can pretty much invest in anything anywhere in the world but we came to the UK because it’s an extremely attractive proposition for businesses like ours.’
Air Products reveals pipeline plans as it commits $500m to UK waste-to-energy plant
6 Sep 2012
Environment and chemical group Air Products will build and operate a $500m waste-to-energy plant in Teeside, UK, despite delays surrounding the Renewables Obligation banding, and told NewNet it is gearing up to make further investments in the sector.
The company has a worldwide portfolio of technologies specialising in atmospheric, process and speciality gases; performance materials; equipment; and technology. Its most recent project in the UK is thought by the company to be the first of its kind and involves a series of bespoke processes.
An Air Products spokesperson said the technology that will be used in the 49MW gasification project, known as the Tees Valley Renewable Energy plant, is the start of a ‘second generation’ phase of development within the sector, which will leave behind standard incineration processes.
At the Teeside plant the non-recyclable waste that would usually be incinerated will go produce syngas, which can then power a turbine to generate energy. The spokesperson said an additional advantage is the system’s flexibility allowing those using the machine to slightly alter the platform to produce hydrogen, ethanol, steam or heat.
However, delays surrounding the RO process in UK government policy meant the project was close to being scraped.
Jeff Lockett, the company’s global asset manager for energy businesses, previously said that any form of delay or uncertainty obviously dis-incentivised investors and that this had been a problem during the process of getting that first plant signed off. But with more clarity now given by the government, the spokesperson said the company has not been deterred from making future investments in the UK.
NewNet has learnt a further four projects are in the pipeline, which are expected to be of similar size to the Tees Valley Renewable Energy plant and may potentially need the same level of financial inject that its current project required.
The investment commitment given by Air Products was welcomed by government officials. The Financial Times reported Deputy Prime Minister Nick Clegg saying, ‘Air Products announcement reflects the UK’s commitment and support for clean energy, combined with our stable and transparent environment for investors.’
After this week’s Cabinet reshuffle, one deal alone may not sway the sceptics concerned about the UK’s green future.
For Air Products, however, this is not an issue, ‘We came to the UK because it looked like there was a very stable direction of travel from the government in terms of supporting green industry.
‘We’re a big company, we’ve got a big balance sheet, we can pretty much invest in anything anywhere in the world but we came to the UK because it’s an extremely attractive proposition for businesses like ours.’
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