media

16 May 2007

Helius Energy Plc - Appointment of Contractor

Helius Energy appoints Engineering Contractor for 65MW biomass power plant Biomass to power company Helius Energy Plc is delighted to announce the appointment of McBurney Corporation and Morgan Est Plc to undertake pre-engineering works leading to the construction of the company's flagship 65MW biomass power plant in Stallingborough, North East Lincolnshire. The construction and operation of the power plant is expected to save around half a million tonnes of CO2 each year.

Helius Energy was established to install and operate biomass-fired renewable electricity generation plants, designed to meet the growing need for reliable power and to support the move away from fossil fuels. The Group is positioned to take advantage of renewable energy legislation developed to combat climate change.

The pre-engineering works include combustion trials to establish emission levels, confirmation of the biomass fuel mixture and Front End Engineering Design (FEED) work to maximise the reliability, efficiency and cost of the renewable power plant over 10 - 15 years.

The contract will take around 20 weeks and is expected to lead to a minimum risk Engineering, Procurement and Construction contract, worth around #100 million, in due course.

Helius Energy's Technical Director Dr Adrian Bowles said: "This is an important milestone in our plans to generate renewable electricity from biomass. The appointment of such an experienced engineering contractor will help ensure a rapid and reliable construction programme, following a successful consent under Section 36of the Electricity Act."

Blake McBurney, President of McBurney Corporation said "This really is an exciting project and we are proud to be part of it."

Additionally, the company has appointed McLellan and Partners Ltd (McLellan) as Owners Engineers, a company with a long track record in biomass energy. McLellan will monitor the design and specifications prepared by the contractor to ensure an optimum plant design, providing engineering expertise as required.

Helius Energy has recently strengthened its in-house project team, with the appointment of Katharina Bischof as Project Engineer. Katharina joins Head of Projects Steve Wood and Mandy Daley General Manager of Stallingborough.

The company holds a 3-year option to purchase the 36 hectare freehold Stallingborough site which is located on Humber Estuary, 6km from the port of Immingham. The local grid capacity supports a new 65MW power station and the application for planning permission is at an advanced stage. The site also allows for the potential co-location of separate bio-ethanol and bio-diesel plants, which would produce biomass as by-products.

Helius Energy also holds an eighteen-month option to acquire a site on the Tees Estuary and is actively seeking a third large site in the UK. Subject to suitable financing, the Group intends to initially develop one other large project and up to three further small-scale projects.

Helius opens the Stock Exchange