Construction begins at Bordesley reserve power plant

Reserve power generation plant operator Mast Energy Developments has began construction on a peaking power project in Bordesley, Birmingham.

The site will be home to a reserve power plant which is whether energy supply is timed so it can be used during periods of peak demand.

A gas connection route has now been granted and has also received approval from network supplier, Cadent Gas, for the required pressure and volumes of gas to fuel the project.
 
With the developments and progress outlined above now in place, the project’s debt funders, Close Brothers will now resume their due diligence with anticipated financial close targeted during Q1 2023.

Mast Energy Developments have said that Close Brothers have already completed a “significant portion” of their due diligence during late 2021 and early 2022 but paused their process until issues arising from the gas connection route were de-risked to their satisfaction, which has now been successfully done.

The specialist energy connection company, Distributed Energy Connections, has also been contracted to provide an all-in gas connection design and construction solution.

Significant savings in the cost of construction and to improve overall output efficiencies have been achieved through an EPC optimisation contract with Clarke Energy – by replacing the currently planned 2 x 2.5 MW Jenbacher engines with 1 x 4.5 MW Jenbacher engine.
 
Following financial close, the company will expedite the project’s construction and it is anticipated that Bordesley will be fully constructed, commissioned and in revenue generation by Q4 2023. It is expected that Bordesley will generate an average total annual revenue of around £1.5m.
 
Pieter Krügel, Mast Energy Developments CEO, commented: “We are pleased with the significant progress and developments on Bordesley the past while and most notably that the hurdle to proceed with the Project’s capex debt financing process can now be resumed.

“We are looking forward to financial close which is expected during Q1 2023 and to then expedite the completion of the Project’s construction and commissioning during 2023, in order to start generating revenue as soon as possible”.