UK developer MGT's 299MW wood pellet-fired Teesside power plant has generated up to 177MW of power from wood pellets for some hours since 20 October, Remit data show.
The plant ramped up from an average of 3MW for a couple of hours on 20 October, to an average of 160MW over 24 hours on 25 October — the latest date for which detailed half-hourly generation data are available. The highest generation reached was 178MW.
The plant is in the process of commissioning on wood pellets, MGT told Argus. The plant had received a cargo of US wood pellets in mid-August.
Balancing data, which show potential and actual generation in real-time but can be revised later, suggest that up to 180MW generation continued until at least midday on 26 October. But the same data suggest the utility did not generate from 27 October to date.
The plant could start commercial operations in a month's time should it continue to generate at more than half capacity and ramp up further — barring any major technical issues during test generation, one market participant said.
MGT Teesside was expected to gradually ramp up its generation this winter after testing output of around 15-30MW for some hours on several days in August-September. Then, the utility was thought to be testing the boiler using fuel oil.
The plant was due to begin commercial operations on 17 May, following multiple-year delays from the original commissioning date. It has a long-term offtake contract with US pellet producer Enviva for up to 1mn t/yr for deliveries to the Tees Port in Middlesbrough, and is expected to consume up to 1mn t/yr of wood pellets when near capacity.
MGT Teeside's delay had offered some relief to the industrial wood pellet market since the start of the winter 2021-22 season but may put more pressure on the supply side once it becomes operational.
The plant will generate under the contracts for difference support scheme — operated by state-owned LCCC — once it demonstrates it can generate at near full capacity. The inflation-linked strike price for MGT Teeside is now £147.56/MWh, from the initially struck £125/MWh in 2014.
