Two new gas-fired CHP plants totalling 45MW to have CO2 offtake contracts alongside PPAs

London-listed investment company VH [Victory Hill] Global Sustainable Energy Opportunities (GSEO) has announced plans to invest £78 million ‘net zero’ flexible power generation projects.
It will fund construction of two combined heat and power plants, with a combined capacity of 45MW, with gas-fired engines and a carbon capture and re-use system.
The plants are said to be at the ready-to-build stage, with planning permissions and commercialisation plans in place.
The first plant will begin construction in Q4 2021 in Nottinghamshire, with a second plant in County Durham expected to be begin construction by Q2 2022.
Once operational, the plants will be contracted under long term power purchase agreements with energy companies for the power output, and long-term CO2 offtake contracts with large industrial companies for the carbon. The company said unlevered returns are expected to exceed 10% and it will target an annual dividend yield of 5%.
Technology companies involved including Rolls Royce, Swedish industrial group, Climeon, Mitsubishi Heavy Industries Group subsidiary Turboden based in Italy (Ticker: 7011:JP) and privately-held Swiss Carbon Capture technology manufacturer, ASCO Carbon Dioxide Ltd.
Richard Lum, Co-CIO of Victory Hill Capital Advisors LLP, investment adviser to GSEO, said: “These projects will provide a highly efficient, flexible source of power that can be called upon when needed, and at short notice, to plug any shortfall in power generation from wind or solar.”