BOARD SEES NEW WOOD_BURNING POWER STATION SPRINGING UP

29 March 2006

For immediate release. With picture.

SENIOR Sembcorp executives have paid a visit to Wilton International to view progress on an exciting £60 million renewable energy development.

Tang Kin Fei, President and Chief Executive of Sembcorp Industries, joined several other senior Sembcorp executives for a tour of the Wilton 10 power station construction site.

The group was on Teesside for a regular board meeting at Sembcorp Utilities UK – the utilities and services business acquired by Sembcorp almost three years ago.

In that time the business, which employs more than 600 people, has seen a radical transformation.

More than £20 million has been invested in a new 42MW Gas Turbine at the Wilton Power Station, where other significant business and environmental improvements have also taken place.

A subsequent decision was then taken to invest in the Wilton 10 power station, which will create around 15 permanent new jobs in Sembcorp Utilities UK and sustain hundreds of others during construction.

When operational it will be the UK’s first large scale biomass power station to use wood as its renewable fuel source.

The plant will result in the generation of 30 MW of ‘green’ electricity for the nation – the equivalent needed to power around 30,000 homes.

On course for completion in the summer of 2007, Wilton 10 is now approaching the half way mark in its construction with around 150 construction workers currently on site

Mr Tang said: “It is an impressive development and one in which everyone in Sembcorp is very proud.”

He paid tribute to the vision of the employees in Sembcorp Utilities UK.

He said: “They have shown a willingness and determination to drive the business forward and projects such as these are testament to the innovative spirit being shown.”

Around 20 per cent of the 300,000 total of wood needed to fuel the power station will come from specially grown energy crops. In the case of Wilton 10 this means short rotation coppice – a type of willow. Around 7,500 acres is required to be grown by farmers and other large landowners within a 50-mile radius of the site.

Similar percentages of wood will also come from north east forests in the form of roundwood logs from the tops of trees and forestry thinning operations and also offcuts from sawmills.

The remaining 40 per cent will come in the form of recycled wood supplied by UK Wood Recycling. The company has recently applied for planning permission to construct a separate recycling facility at Wilton.

Paul Gavens, the managing director of Sembcorp Utilities UK, said: “It was a pleasure to show the executive team the work on Wilton 10 and I think they were suitably impressed with what we have achieved so far.”

The picture shows Wilton 10 Project Director, Tony Lewis (right) showing Mr Tang (second left) the fuel handling area under construction.