Earls Gate EfW due operational after turnaround
Owners of the Scotland-based project tell EWB how they spent months preparing for the full remobilisation and delivery of the EfW project, which had its first fire on waste last month and will be fully operational early next year
Energy-from-waste plant and renewable energy developer Brockwell Energy has confirmed its Grangemouth-based facility is currently expected to be fully operational by February next year after a successful turnaround of the project.
Speaking to EWB the company’s chief operating officer Neil Young said it had been a “Herculean team effort” to get the Earls Gate EfW facility to this stage, after the build was left about “65 to 70% complete” when its EPC contractor France-based CNIM went into administration early 2022.
Mr Young explained that as another of Brockwell’s projects, the Westfield-based EfW, reached financial close towards the end of 2021, he and his colleagues were aware of the financial headwinds facing CNIM and sensed an inevitability to their demise.
It transpired CNIM were placed into administration in January of last year, which resulted in Brockwell having to assume the role of a principal contractor running the site through a management service agreement (MSA).
“We should’ve been celebrating getting Westfield over the line and focused on planning the mobilisation, however when CNIM were placed into administration we had to formally terminate the EPC contract for Earls Gate, which meant we’d not just lost our construction contractor, but our O&M deal as well.
“At this point we had to prepare a Rectification Plan, which included a revised programme, updated budget, construction strategy, process to appoint an O&M contractor, strategy to deal with subcontractors and approach to recovering Bond proceeds. This planning period took a number of months, however , we were ready to move forward with the plan in August 2022.”
Mr Young explained that Brockwell gathered a new team to deliver on the Rectification Plan. The business was initially set up to develop low carbon and renewable energy projects and had never planned to be as hands-on in the principal contractor role with projects as it now was with Earls Gate.
However, with about 45 new staff recruited having experience of the project plus new team members, Young says the business was able to move forward with Earls Gate.
Brockwell also approached Hitachi Zosen Inova (HZI) over the vacant O&M deal, a contract for which was signed by the Switzerland-based engineering firm over the summer.
HZI also came on board to complete the commissioning of the facility and last month Young confirmed the plant successfully achieved the first fire on waste milestone.
Mr Young said the remainder of the hot commissioning and performance testing will take place over the coming weeks, with full takeover of the facility expected in early 2024.
However, what is now a success story for everyone still involved, could have ended very differently as Young explains.
“The project was already dealing with Brexit and Covid-related issues before the loss of CNIM, but we and our partner Encyclis, were confident in it, had the full support of our investors and lenders, and a strong revenue position, which included an offtake agreement for c 75% of the facility’s power and steam onto a private network to Calachem.
“But, we had to put our supply chain back together, which meant engaging with distressed contractors across the board, from locally-based businesses to larger suppliers in a backdrop of significant inflationary pressure. This was a huge challenge, however the team worked professionally and methodically through each of the issues.
“We did what we could to be fair and balanced in our approach to the supply chain and in the main we succeeded. We had to find a way forward with these contractors, finding a commercial approach that was acceptable and returned them to site to deliver their scopes and protect our programme. ”
Mr Young stated “We wanted a best in class facility, which became our mantra and that’s what we’ve now got, we have been careful to ensure we safely completed the build to the original specification, and to the highest standards”.
“And yes we’ve injected more capital versus the original budget and it has taken more time to get to this stage on the project, but considering the specific circumstances, coupled with the macro economic environment, to deliver a best in class asset demonstrates our drive and determination to recover the project .”
Looking to the future, Young said the business expects to submit plans for a carbon capture plant to “future proof” the facility, following the news that the Scotland-based Acorn cluster would go ahead.
The UK government eventually confirmed Acorn’s previous status as a reserve cluster would be upgraded in July of this year.
Earls Gate is jointly owned by Brockwell and EfW business Encyclis. Brockwell has remained as the lead developer of the project throughout.