Keppel Seghers: Keppel Seghers wins performance bonuses and tech support deal with UK waste-to-energy power station at Runcorn

SINGAPORE (Mar 20): Keppel Seghers has won two performance bonuses and a five-year technical support agreement totalling over GBP 7 million ($12.9 million) for Phase 2 Thermal Power Station at Runcorn in the United Kingdom (Runcorn EfW). Together, Runcorn Phases 1 and 2 make up the largest waste and renewable energy project in the UK, according to Keppel Seghers. The combined facility is able to process up to 850,000 tonnes of refuse-derived fuel (RDF) per year, converting them into renewable energy comprising 80 MW of electricity and 52 MW of thermal energy in the form of steam. "This makes Runcorn EfW one of the largest and most efficient combined heat and power (CHP) facilities in the world," says Keppel Seghers. Phase 2 Thermal Power Station is owned by Viridor EfW (Runcorn), a special purpose vehicle owned by Viridor Waste Management. Keppel Seghers is a wholly-owned subsidiary of the Keppel Infrastructure group, which is a division of Keppel Corporation. The bonuses, worth approximately $7.3 million, were awarded in recognition of Keppel Seghers' excellence in operational performance for higher electrical efficiency and lower chemical consumption levels. Performance of the Runcorn EfW has exceeded expectations since the project was completed and handed over to the client and commercial operations commenced in 2015, according to Keppel Seghers. The increased revenue from higher power output, and significant operational cost savings from lower chemical consumption have allowed the plant to enjoy stronger economic returns. As a result of Keppel Seghers' successful completion of the Runcorn EfW and robust operating performance, Viridor EfW (Runcorn) has also signed a technical support agreement valued at $5.9 million with Keppel Seghers, for them to provide performance enhancement reviews for the plant and further specialist technical support to the plant's current operations and maintenance team for a period of five years starting from 2018. The scope of this contract covers regular plant operation reports, personnel training, assistance during major overhauls, and data analysis on plant performance enhancement potential. Dr Ong Tiong Guan, CEO of Keppel Infrastructure, says, "The performance bonuses from our client reflect Keppel Seghers' excellent track record in providing best-in-class energy and environmental assets to our customers while optimising the performance of their operating assets." Shares in Keppel are closed 6 cents higher at $7.77 on Tuesday.