Spalding power station expansion could start in early 2016

Work to double the size of Spalding’s power station could begin as early as next January.

InterGen, which owns the existing station, says construction could commence in the fourth quarter of the 2015 financial year, if it is successful in securing a government subsidy.
The government is due to confirm in July the next round of Capacity Market Contracts, which see energy companies take part in a reverse auction to secure retainer-style payments to ensure their power plants are available – even if they don’t actually end up generating. The auction is then expected in December.

A spokesman for InterGen said: “If the project secures a Capacity Market award we will then look to finance the project with construction commencing around quarter four of 2015.
“Locally, this will create jobs during construction and operations and the Section 106 with South Holland District Council will become effective, which should also bring local benefits.”

InterGen says it will invest up to £500million in the project to generate much-needed power for the country.
The company recently applied for a variation to the original planning application to include two scenarios – a 945MW combined cycle gas turbine or a 645MW combined cycle gas turbine and an open cycle gas turbine unit of less than 300MW.
The expansion is planned on around 20 acres of land designated for industrial development and will generate enough electricity for about one million homes.

Clean-burning natural gas will be the fuel for the new plant and modern equipment and technology will be employed to control emissions, which will largely consist of water vapour and carbon dioxide.
The application also requests that the time limit for beginning work on the project is extended for five years.
It is thought up to 1,500 jobs will be created during the new power station’s construction, including apprenticeships.
It could become operational by 2018/19, creating up to 20 permanent skilled jobs.

In October 2013, InterGen signed a £1billion deal with engineering giant Siemens to build and maintain the new plant, as well as one in Essex.
InterGen is the UK’s largest independent gas-fired power producer and three of its plants, including Spalding, provide six per cent of the country’s average electricity demand.