Scottish Hydro-Electric expects to invite tenders before the end of the year for a turnkey construction contract for a 56MW combined heat and power plant for the Michelin tyre company in Stoke-on-Trent.
Hydro-Electric will build own and operate the £35m plant for about 15 years under the contract, which is conditional on the gas-fired project receiving Section 36 planning consent from the Department of Trade and Industry.
Although the DTI is sitting on a large backlog of Section 36 applications following the moratorium on new consents during the year-long energy review, the two partners are confident their scheme will secure consent before Christmas, despite the stricter regime now applied to gas-fired projects.
The proposed plant is tailored to Michelin’s energy needs and would not produce a big surplus of electricity for sale. It will replace an ageing gas-fired facility with one that can be up to twice as efficient.