The renewable energy generator Blue-NG has chosen Land and Marine to build its first two renewable power stations. The Wirral based company will start work shortly on the first site at Beckton in East London.

Commenting upon the decision to appoint Land and Marine, Blue-NG’s Chief Executive Andrew Mercer said: “This was a very competitive tender which attracted high quality applicants. I’m confident that Land and Marine’s worldwide experience in this sector will enable them to deliver this pioneering project on time. The signing of this contract means we can now get on with the task of helping London to meet its renewable generation and carbon dioxide reduction targets.”

The Combined Heat and Power (CHP) plant fuelled by sustainably grown and locally sourced liquid biomass (rapeseed oil) will provide electricity for some 50,000 homes and heat for district heating or local industry. Blue-NG has developed a new model of CHP called Combined Heat and intelligent Power (ChiP) which will be located on gas pressure reduction stations owned by National Grid and the Beckton plant will be the first of its kind in the world. Heat from the engine will be used in the gas pre-heating process, which is a necessary part of the pressure reduction process.

A planning application for the second ChiP plant at Southall in West London is currently being considered by Ealing Borough Council and the Greater London Authority. Subject to planning consent, Land and Marine would start construction at Southall later this summer, with both plants due to be operational by the end of 2011.

The £110m contract secures the jobs of 25 engineers during the design phase of the works and a further 200+ jobs within Land and Marine and its supply chain partners. Bath based Blue-NG is looking to recruit up to 40 new staff as it plans to roll out more plants and technologies in the UK.

Mark Fairbairn, Executive Director of Gas Distribution at National Grid said: “Land and Marine have been trusted partners in many of our construction projects. I’m delighted that they will be helping Blue-NG to pioneer a new model of local energy generation and distribution from our gas pressure reduction stations.”

Adam Wynne Hughes, Managing Director of Land and Marine said:

“This award acknowledges the hard work of our Tendering and in-house Energy design teams and I am delighted to see Land & Marine working on such a prestigious project, contributing to the UK’s renewable energy targets.

Land and Marine continues to expand its capabilities within the renewable power plant market, complimenting the range of pioneering and innovative projects the business has undertaken within the UK and overseas during the past 50 years. This exciting and challenging project is a wonderful opportunity for all involved to build upon our past successes”

The news has been welcomed by Andrew Mercer, CEO of Blue-NG who said:

“This is a crucial decision for us and means we can move ahead with confidence. Being recognised as renewable under the RO is vital to our business plan. Preliminary accreditation is in effect, the last regulatory hurdle we had to jump through.”

Click here to read Ofgem letter confirming preliminary accreditation.

Blue-NG will use a new ultra-efficient CHP model fuelled by bioliquid to generate green electricity at pressure reduction station sites owned by National Grid. The ChiP (Combined Heat and intelligent Power) plant is the first of its kind in the world and is already attracting global interest.

Blue-NG will use liquid biomass from sustainably grown energy crops to fuel its engines. These will produce electricity and heat. Some of the heat will be used in the process needed to reduce gas pressure in the National Grid network so that it is safe to use in homes and industry. Using this otherwise wasted heat will enable National Grid to turn off its existing gas heaters which prevent the gas from freezing. The rest of the heat will be used to generate more electricity or for district heating. ChiP has an electrical efficiency rating which peaks at 86%, making it around a third as efficient again as the next most electrically efficient generator. Blue-NG is now working towards accreditation under the Renewables Obligation Certificate.

Blue-NG has already won approval from London Thames Gateway Development Corporation (LTGDC) to begin construction of its first plant at National Grid’s Beckton site in East London. The company has signed up to a Section 106 agreement with LTGDC, which guarantees sustainable procurement of crops and a commitment to the research and development of so-called ‘2nd generation’ fuels and technologies.

Beckton will produce enough electricity (20MW) to power over 60,000 homes and the potential to provide heat (5MWt) for district heating. Construction is due to start early next year and the plant should start generating renewable electricity in 2010. There are plans to develop another seven sites, with potential for many more nationwide. A planning application for a second pilot in Southall will be submitted in November.

Commenting on the decision by OFGEM, Blue-NG’s Chief Executive Andrew Mercer said:

“Blue-NG’s ChiP has a real contribution to make in reducing the UK’s carbon emissions while helping to maintain secure and more affordable power from renewables. Our sustainable procurement policy, drawn up with the support of Greenpeace means that renewable energy will be generated in the East End, for Londoners, helping the city to achieve its sustainability goals. And where London leads, the rest of the UK and the world will follow.”

John Sauven, Executive Director of Greenpeace said: “This is very welcome news from the regulator. Decentralised energy generation from genuinely sustainable renewables, has a huge role to play in reducing carbon emissions and OFGEM has recognised that.”

Mark Fairbairn, Executive Director of Gas Distribution at National Grid commented:

“This decision by OFGEM will help the UK to mitigate climate change. National Grid is already planning to cut its own greenhouse gas emissions by 80% of 1990 levels. Blue-NG is now poised to become a major contributor to the UK’s mix of renewable energy sources for the 21st century.”

Planners have given the green light for a green energy generator in East London. The renewable energy company Blue-NG will use a new form of Combined Heat and Power (CHP) plant fuelled by sustainably grown energy crops. The first plant will be installed at Beckton in the Borough of Newham, with construction expected to start later this year and electricity being generated from late 2010. There are plans for 7 more pilot sites in the first phase, although the technology has the potential to be used worldwide.

Blue-NG will use vegetable oil to fuel its engines. In what’s thought to be the first deal of its kind, the company will sign a binding ‘Section 106 agreement’ with the local authority, which means it can only use sustainably sourced crops.

Blue-NG will make use of a Pressure Reduction Station (PRS) on the Beckton gasworks site and will produce both electricity and heat. Some of the heat will be used by National Grid as part of the process needed to reduce gas pressure so that it is safe to use in homes and industry. This will enable National Grid to turn off its existing gas heaters. The rest of the heat will be used to make even more electricity or for district heating. Known as ChiP (Combined Heat and intelligent Power) it has an electrical efficiency rating which peaks in excess of 80% making it around a third as efficient again as the next most electrically efficient generator.

Beckton could produce up to 20MW of power – enough for over 50,000 homes and provide heat for district heating.

Commenting on the approval from planners, Blue-NG’s Chief Executive Andrew Mercer said:

“Councillors have recognised that Blue-NG can help to reduce London’s carbon emissions while helping to maintain secure and more affordable power from renewables. We are delighted to sign up to a sustainable procurement policy for our vegetable oil, which we hope will be a model of best practice. Planning approval from Newham means we are on target to be producing renewable energy in London for Londoners by 2010, helping the city to meet its sustainability goals.”

John Sauven, Director of Greenpeace UK said: “Blue-NG has made a clear commitment to sustainable practice and councillors deserve praise for including an agreement which holds them to that. This is a beacon project for other decentralised renewable generators which will help to meet electricity demands in a demonstrably sustainable way.”

Mark Fairbairn, Executive Director of Gas Distribution at National Grid commented: “This go-ahead from Newham means Blue-NG is set to deliver on the exciting promise of CHiP. In the 19th century, Simon Adams Beck built the world’s largest gasworks on this site, so it is fitting that Beckton, which is named after him, will pioneer a 21st century solution to our sustainable energy needs.”