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Gazprom Energy has signed a deal with Tata Chemicals Europe to supply natural gas to the chemical company’s existing CHP facility in Cheshire.
Gazprom has also agreed to buy back excess electricity generated by the plant in Northwich.
The CHP plant produces steam and electricity which is used in Tata’s manufacturing processes at two sites in Northwich, where it produces soda ash and sodium bicarbonate for a range of industries.
Tata Chemicals Europe acquired the plant, one of the largest of its kind in the UK, from Eon in September 2013.
The plant currently consumes up to 120 million therms of gas and has the capability to export up to 99MW of power, both of which will be traded exclusively through Gazprom during the one-year contract term.
Gazprom says the partnership will also provide the opportunity for its clean energy team to support Tata Chemicals Europe’s carbon management strategy with respect to the EU Emissions Trading Scheme (EU ETS).
Andrew Morris, manager of clean energy at Gazprom Energy, said: “With energy costs continuing to be a primary concern for UK industrial businesses, more and more are opting to become generators themselves. Combined Heat and Power (CHP) facilities remain the most popular means of embedded generation, allowing businesses to avoid the need to import additional electricity to power industrial processes.
“Tata has taken a market-leading approach to this in the UK and by structuring a supply and power-purchase agreement we’re looking forward to supporting their energy efficiency strategy.”
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