Waste to Energy19 Apr 2021 21:52
Speaking to a division in my work who have previously delivered Waste-To-Energy Projects (I work within a large Tier 1 national Contractor) and it opens the eyes here to the size of the challenge before Kibo.
It’s not cheap as Energy goes (it has very high technical and environmental requirements), it costs anywhere from £4/5m to £7/8 million per installed Megawatt of Capital Construction Costs (CAPEX) to build / install, the new £300 million Redcar Energy Centre was stated as something that just had planning permission granted and that is a 450,000 tonne facility diverting waste from landfill which will generate 49.9Mw to the grid, so we are looking at £6 million per installed Megawatt of CAPEX. It gets cheaper the bigger the plant you build (economies of scale), so small plants will be more expensive per installed Megawatt of CAPEX!
Even at Mast Energy Size Offtake Agreements of between 5-10Mw’s (with Statkraft), you could be looking at up to £40 - 60m CAPEX costs!
There does however appear to be real investor appetite in the sector and has large local and national government buy-in, funding is apparently ready and available if the investment case is there, ranging anything from a 10 / 90% Equity / Debt splits for particularity high return investment cases, up to 30 / 70% Equity / Debt splits for less attractive returns. So on the face of it Kibo would need serious up front capital to make a go of this if they will be taking on planning permitted / “shovel ready” sites.
Of course, after this when you google the large providers of this kind of technology and kit that goes into these plants the name “AB Impianti (AB Groupo)” doesn’t take long to come up and comes up with over 980 systems / 795Mw previous installed and over 875 systems current maintained and managed around Europe and beyond. So you can already see where LC is going with this, this is the same AB Impianti (AB Groupo) that is providing the engineering systems and funding under a Joint Development Agreement (JDA )with #MAST! It’s safe to assume this is a Statkraft / AB Impianti (AB Groupo) rinse and repeat number:
https://www.gruppoab.com/en/biogas-and-biomethane/
It’s got interesting this, using the same arrangements established at MAST, we could be on to something here and they could get it up and off the ground quickly!
JD
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