£500m power plant project gets fired up by new deal

Spalding power station. Photo (TIM WILSON): SG040212-117TW
Spalding power station. Photo (TIM WILSON): SG040212-117TW
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A £500million project to double the size of Spalding’s power station has taken a big step forward.

InterGen, which owns the current power station, has signed a deal with engineering giant Siemens to build and maintain the new gas-fired power plant.

Siemens will also build and maintain a similar project in Essex.

It is expected the two projects, totally £1billion, will create up to 3,000 jobs during construction with around 60 full-time jobs expected at each site when the stations are up and running.

The plans to extend Spalding power station were passed by district planners in 2010, but were put on hold because of market conditions.

The latest move means all the pieces are now in place to go ahead with the project, although a spokesman said negotiations are now underway on the sale of the electricity the new power station would produce.

Intergen spokesman Alastair Lamond said: “We hope to know by the end of the year if we have a buyer for the energy – and we hope to have the project completed by 2018.”

But InterGen has called on the Government to push ahead with electricity market reform.

Mark Somerset, who heads up InterGen’s European business, said: “InterGen stands ready to deliver energy for the UK, provided Government delivers reform which attracts investment and gives our customers and ourselves the confidence we need.”

The latest step forward for Spalding Power Station has been welcomed locally.

South Holland District Council portfolio holder for economic development Coun Howard Johnson said: “I am very pleased to see this huge investment in South Holland finally getting the go-ahead.

“Energy security is vital for the future of the UK, and South Holland will be playing a major role in this.”