West Perth-based CT Engineering and Construction Pte Ltd (CTec) has signed a contract with Federal International Ltd subsidiary, Banyan Utilities, to assist with the construction of its co-generation facility at Natural Fuels Ltd’s Singapore-based biodiesel plant.
CTec, a subsidiary of Capital Turbines Australia Pty Ltd, will provide engineering, procurement and construction (EPC) services for the co-generation project, which will be part of the largest biodiesel plant in the world when completed.
The company’s EPC contract will provide five megawatts of electrical energy and 45 tonnes of steam per hour to the plant.
Its initial construction project will span about 12 months, with a further commitment to 12 years of operations and maintenance work.
The contract is valued at about $50 million.
Earlier this month, Subiaco-based Natural Fuel Ltd signed a 12-year agreement with Banyan Utilities for the co-generation facility and will assume ownership once Banyan has built and operated the plant for the duration of the contract.
Surplus energy will be sold into the grid and revenues shared on a pre-determined formula.
Capital Turbines chief executive officer Neil Robinson said it was a strategic move by the company to expand its portfolio in the Singapore energy market.
He said the company would also benefit from its 10 per cent shareholding in Banyan Utilities, which was established specifically for the project.
Banyan’s contract with Natural Fuels is worth about $300 million.
Mr Robinson said he hoped the co-generation facility would be the first of many similar projects for Banyan in the region.
Natural Fuels announced to the market this week that its Singapore facility would come online by January 2008.
The facility will consist of three trains, each with an output capacity of 200,000 metric tonnes.
The first train will be online by late October or November this year, with the second due one month later and the third in January.
Natural Fuels general manager strategic planning and development, Steve Harris, told WA Business News the contract with CTec would save the company up to 5 per cent in utilities expenditure.
Mr Harris said the Singapore biodiesel plant would become an asset over time.
“Effectively, the company is paying back the build and operation of the plant over the 12 years and so it becomes an asset of Natural Fuels at the end of the 12 year period,” he said.
“Natural Fuels does have the option to acquire the plant within the 12 year period.”
