SSE, the power company formerly known as Scottish and Southern Energy, has entered into a 50:50 joint venture to develop a new 300m-pound multifuel power plant at its Ferrybridge site in West Yorkshire.
The joint venture - Multifuel Energy Ltd - expects to begin construction of a 68MW facility in late 2012 and complete the project by early 2015.
SSE claims hundreds of jobs will be created during the construction phase, while 50 new full time jobs will be required once the plant is fully operational.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The joint venture has entered into a long-term fuel procurement contract with 3SE, another joint-venture, this time with waste management outfit Shanks. This contract will provide waste-derived fuels using waste taken from nearby Barnsley, Rotherham and Doncaster councils.
SSE makes clear the new multifuel pant is not intended to replace the existing 1,000MW of coal capacity which is closing in 2015. SSE says it has not yet made a decision on the future of Ferrybridge power station.
SSE's Managing Director of Generation, Paul Smith said: "Multifuel technology is a tried and tested way of generating clean, base-load power. This new multifuel plant will provide additional diversity to SSE's generation portfolio and make a useful contribution to ensuring we have reliable energy supplies for the future."
SSE shares were flat in morning trading.
BS
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
