UK utility awards $100 million CHP contract

UK utility Scottish & Southern Energy PLC awarded ABB Group a $100 million contract for 10 combined heat and power (CHP) plants. ABB will build the small-scale natural gas-fired plants throughout the UK and operate and maintain them for 17 years.

Jun 9th, 2000

UK utility Scottish & Southern Energy PLC awarded ABB Group, Zurich, Switzerland, a $100 million contract for 10 combined heat and power (CHP) plants. ABB will build the small-scale natural gas-fired plants throughout the UK and operate and maintain them for 17 years. The plants will be linked and remotely controlled and monitored to optimize load management across the national grid.

Several of the plants will be used in greenhouse applications, providing electricity for lighting, hot water for heating, and CO2 to stimulate plant growth. ABB said it has built and operated similar applications in the Netherlands.

ABB Financial Services arranged part of the financing for the contract.

ABB said the order confirms its strategy to move fast in the alternative energy solutions market. The group's alternative energy strategy includes CHP, fuel cells, microturbines, and renewables like wind power.

Scottish and Southern Energy is one of the largest vertically integrated energy groups in the UK, serving 3.7 million customers through Scottish Hydro Electric and Southern Electric.

The group competes in the UK electricity generation, supply, and energy trading markets as well as the domestic gas market. It also has interests in electrical retailing, electrical, and utility contracting and environmental control systems.

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