E.ON to build big biomass plant in U.K.

Duesseldorf, Germany-based E.ON (OTC: EONGY) announced plans to build a large biomass plant in the U.K., with the 150 megawatt facility expected to reach full operation in 2014.

Located in the Port of Bristol, the E.ON said the proposed £300 million Portbury Dock Renewable Energy plant will generate enough power for more than 200,000 homes by burning wood. The company said the wood will mostly be brought to the plant by boat.

"This scheme would be one of the largest biomass power stations ever built in the U.K. and would make a considerable contribution to helping the government meet its renewable energy targets," said Paul Golby, chief executive of E.ON UK.

This is the third E.ON biomass development in the U.K. The company already operates Scotland's largest dedicated biomass power station at Steven's Croft near Lockerbie and, earlier this year, received permission for a 25 megawatt biomass station in Sheffield.

The company said it issued a scoping statement to North Somerset Council, the Department for Business, Enterprise and Regulatory Reform and other interested parties outlining the plans for the biomass plant and expects to submit a full application to BERR in the middle of next year.

If the project is approved, E.ON said construction will start in 2010, with the first power expected to be produced in 2013 and full operation reached in 2014.

Last month, E.ON announced a deal with Clinton, N.J.-based Foster Wheeler (Nasdaq: FWLT) on a waste to energy contract (see Foster Wheeler, E.ON in waste to energy contract). Under that agreement, Foster Wheeler will supply a waste to energy boiler for a combined heat and power plant in Sweden. 

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