Press Room

Multifuel Energy Limited 2 completes purchase of Skelton Grange Multifuel waste-to-energy site

Proposed facility will divert 410,000 tonnes of waste from landfill annually

WEST YORKSHIRE, ENGLAND – 27 April 2020 – Multifuel Energy Limited 2 (MEL2), the 50:50 joint venture between Wheelabrator Technologies and SSE Thermal recently completed the purchase of 19.5 acres of land at the Skelton Grange site in Leeds, marking an important next step in the development of the Skelton Grange Multifuel waste-to-energy project. Construction of the proposed waste-to-energy facility is expected to commence in 2021.

The Skelton Grange waste-to-energy facility, which was granted planning consent for an increased capacity in February 2020, will divert around 410,000 tonnes (459,000 tons) of non-recyclable household and business waste from landfill or export and instead use it to generate 45MW (gross) / 39MW (net) of renewable baseload energy per annum, equivalent to the needs of around 100,000 UK homes. Located on a site acquired from leading land and property regeneration company Harworth Group plc, the facility is strategically located to treat non-recyclable waste from a catchment area which has a projected capacity shortfall of over 1M tonnes (1.1M tons) per annum.

Skelton Grange is less than 15 miles from Ferrybridge 1 and Ferrybridge 2, which are part of the successful Multifuel Energy Limited 1 (MEL1) joint venture between Wheelabrator Technologies and SSE Thermal.

Ferrybridge 1 commenced commercial operations in July 2015 and Ferrybridge 2 reached full commercial operations in December 2019.  Each facility processes 675,000 tonnes (755,000 tons) of non-recyclable waste per annum and they generate 79MW (gross) / 72MW (net) of renewable baseload energy.

Wheelabrator Technologies UK Managing Director, Julia Watsford said: “Completing the purchase of the land for Skelton Grange marks another significant milestone for Wheelabrator Technologies and the MEL joint venture. Skelton Grange Multifuel will further improve the UK’s waste-to-energy infrastructure at this critical time – not only will it safely treat waste byproducts and divert non-recyclable waste from landfill, it will prevent the need for export of waste to Europe, reduce greenhouse gases, recycle metals that would otherwise go to landfill and generate renewable baseload energy.”

“We remain fully committed to providing our essential waste disposal service to our customers and communities throughout the COVID-19 pandemic, whilst ensuring the safety of our people, contractors and communities remains our number one priority. In these challenging times, we continue to focus on how to best deliver the critical infrastructure required to support the safe and reliable treatment of non-recyclable waste, both now and in the future.”

Stephen Wheeler, Managing Director of SSE Thermal, said:

“SSE Thermal is looking forward to progressing the Skelton Grange Multifuel project as part of our joint venture with Wheelabrator Technologies, following the successful completion of our nearby Ferrybridge Multifuel facilities. We’re pleased to have reached this key milestone in the development of this proposed project.”

Matthew Smith, Senior Asset Manager at Harworth Group plc, said:

“This is a fantastic deal for all concerned and follows many months of working diligently with key stakeholders including Leeds City Council and the Canals & Rivers Trust to reach completion.  The re-use of the site for energy generation has been a long time coming since the former Power Station stopped producing electricity in 1994 and we look forward to supporting Wheelabrator and SSE in the scheme’s construction and operation.”

About Wheelabrator

Wheelabrator Technologies is the second largest US waste-to-energy business and is an industry leader in the conversion of everyday residential and business waste into renewable baseload energy. Wheelabrator currently has a platform of 24 strategically located assets across the US and UK —19 waste-to-energy facilities (one under construction), one waste fuel facility as well as four ash monofills. We also recover metals for recycling at two advanced metals recovery systems and one central upgrade facility.

Wheelabrator currently has an annual waste processing capacity of over 8.3M tonnes (9.2M tons), and a total combined electric generating capacity of 619MW (gross) — creating enough energy to power 700,000 US homes. Wheelabrator also recovers metals for recycling into commercial products. The company’s vision to develop, deliver and realize the potential of clean energy speaks to Wheelabrator’s ongoing commitment to the development of clean energy solutions for its customers and local communities. Wheelabrator UK is the fourth largest UK waste-to-energy business and currently has an annual waste processing capacity of over 2.2M tonnes (2.4M tons), and a total combined electric generating capacity of 245MW (gross) — enough energy to power more than 500,000 UK homes. Wheelabrator is owned by Macquarie Infrastructure and Real Assets, a business within the Macquarie Asset Management division of Macquarie Group and a global alternative asset manager focused on real estate, infrastructure, and agriculture and energy assets. For more on Wheelabrator, please visit www.wtienergy.com. In the UK, visit www.wtienergy.co.uk.

About SSE Thermal

SSE Thermal comprises SSE’s flexible generation, energy-from-waste and energy storage activities, with over 600 direct employees across the UK and Ireland. The business operates two of the UK’s most efficient energy-from-waste facilities in Ferrybridge, West Yorkshire, as part of a joint venture with Wheelabrator Technologies. Combined, the FM1 and FM2 facilities are capable of diverting over 1.3 million tonnes of waste from landfill annually, and instead using it as a valuable source of energy. SSE Thermal is currently constructing the 840MW Keadby 2 CCGT in North Lincolnshire, which is expected to become the cleanest and most efficient gas-fired power station in Europe when completed in 2022. As part of its commitment to a net zero future, the business has a core focus on decarbonising its energy generation through emerging carbon capture and hydrogen technology.

About Harworth Group plc:

Listed on the premium segment of the main market, Harworth Group plc (LSE: HWG) is a leading regenerator of land and property for development and investment which owns, develops and manages a portfolio of approximately 21,500 acres of land on around 120 sites located throughout the Midlands and North of England. The Company specialises in the regeneration of former coalfield sites and other former industrial land into new residential developments and employment areas (harworthgroup.com).