GDF Suez Energy UK has signed power-purchase agreements for two UK biomass projects with 83.5 megawatts of capacity.
GDF will buy the entire output from the 44.2-MW Snetterton biomass plant in Norfolk developed by BWSC East Anglia under a 15-year PPA. The straw-fired project, which will start operating in late 2016, is financed by Copenhagen Infrastructure and Burmeister & Wain Scandinavian Contractor.
Templeborough Biomass Power Plant Ltd., wholly-owned and funded by CI, awarded GDF a 15-year PPA for the 39.3-MW Templeborough plant in Rotherham. The plant, which will convert waste wood into power, is due to start operating in March 2017.
GDF said it will buy the output from Snetterton and Templeborough projects at an index-linked rate, providing a market-reflective price for every kilowatt-hour of electricity generated. To provide an assured return on investment, the PPAs also include a floor price, guaranteeing a minimum rate for the output from both plants.
GDF will also purchase all ROC and LEC certificates received by the two plants, which will help the energy supplier to meet its own sustainable sourcing commitments under the government’s Renewables Obligation.