Burges Salmon advises Cramlington on new CHP project with Aesica

Burges Salmon has advised Estover Energy Limited and Cramlington Renewable Energy Developments Limited on the development of a new biomass Combined Heat and Power plant in Cramlington, Northumberland.

21 September 2015

Energy sector experts from Burges Salmon have advised Estover Energy Limited and Cramlington Renewable Energy Developments Limited (CREDL) on the development of a new biomass Combined Heat and Power (CHP) plant adjacent to the Aesica Pharmaceuticals Limited site in Cramlington, Northumberland.

The Burges Salmon team, led by Energy sector partner Nick Churchward advised Estover and latterly project development vehicle CREDL on energy regulatory, private electricity and heat supply arrangements, grid, planning, environment and real estate matters.

CREDL will supply electricity and/or heat to Aesica and to a neighbouring industrial site occupied by Merck Sharpe & Dohme Limited and export surplus electrical energy to the local distribution network.

The 30MW biomass CHP plant at Cramlington will directly supply heat and electricity to Aesica Pharmaceuticals, reducing its carbon footprint and energy costs and improving security of supply. The plant will also export electricity to the local electricity grid and has a capacity to power 50,000 homes. There is an abundance of local fuel with 500,000 acres of forestry within 60 miles. Aesica Pharmaceuticals is one of the UK’s fastest growing pharmaceutical companies.

Nick Churchward said: “We are delighted to have advised Estover Energy and development vehicle CREDL on yet another exciting renewable CHP scheme. It has been a great achievement for all involved in the face of a changing and challenging regulatory environment for the energy sector. This project demonstrates the real benefits to the UK economy that forward thinking energy users and developers can achieve by intelligently co-locating renewable generation infrastructure and commercial scale energy users.”

In 2014, Burges Salmon advised Estover Energy and project vehicle Speyside Renewable Energy Partnership Ltd (SREPL) on the development of SREPL's new biomass CHP plant in Speyside, Scotland. The Speyside project is in construction and will supply heat to the neighbouring Macallan distillery and also export renewable electricity to the local distribution network.

The Burges Salmon team comprised partners Nick Churchward and Euan Bremner, senior associates Emma Andrews and Michael Bray, and solicitors Alec Whiter, Samuel Swann and Stephen Humphreys.

Key contact

Nick Churchward

Nick Churchward Partner

  • Head of Resource and Waste Management
  • Projects
  • Energy, Power and Utilities

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