B&W gets insurance payout over delays to plant builds

UK/Denmark: Latest update confirms the company has received €8.1m in insurance payouts for its delayed facilities

The Port Clarence biomass-fired plant, image google.co.uk
The Port Clarence biomass-fired plant, image google.co.uk

US-based waste and bioenergy plant developer Babcock & Wilcox Enterprises (B&W) has revealed it has clawed back some of its losses related to delayed facility builds in the UK and Denmark.

The company revealed in a third-quarter financial update it had received insurance payouts related to delays to plant developments in Denmark and the UK.

The update does not identify the plants specifically, but lists them as the first and fifth European-based facilities and says the insurance paid out in July and September respectively.

According to the update, B&W is "continuing to pursue other potential insurance recoveries and claims where appropriate and available".

ENDS understands the fifth facility is the UK-based Port Clarence biomass-fired facility, which is still not completed. B&W states it received £2.8m (3.2m) in relation to delays on the project. 

However, this is only a fraction of the £70m (€82m) B&W paid to the project’s owner investment fund Glennmont Partners to cover delays at Port Clarence and the biomass-fired Margam facility, which was delivered but behind schedule. 

The update also shows B&W received another insurance payout totalling DKK37m (4.9m) for a delayed facility in Denmark. Its first development in the country was Ørsted’s Skærbækværket biomass-to-coal conversion, which officially opened in 2017.

B&W also delivered the Amager Bakke energy-from-waste facility in Copenhagen. The company was also behind the Templeborough biomass-fired plant and the Dunbar EfW facility, both of which are in the UK.

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