A STATE-of-the-art power plant that forms part of the Phillips 66 site at South Killingholme is to be bought out in a major deal worth tens of millions of pounds.
Vitol Group, based in Switzerland, has agreed to buy out the entire share capital of Phillips 66 Power Operations Ltd, owner of Immingham Combined Heat and Power Plant (ICHP) – one of the largest of its type in Europe – for an undisclosed sum.
The 1,220 MWe facility, where 56 people are employed, provides steam and electricity to Phillips 66's Humber Refinery, steam to the neighbouring Lindsey refinery, and electricity to the National Grid.
Expanded at a cost of £210 million in 2010, it has at least twice been subject of a review by the Houston-based oil giant, under both the ConocoPhillips and recently separated Phillips 66 business.
Ian Taylor, president and chief executive of Vitol Group, said: "ICHP is a high quality power plant with a highly skilled and experienced workforce. We are delighted to add it to our portfolio."
The transaction is subject to customary regulatory reviews and is expected to complete by the end of June.
Brian Coffman, general manager of Phillips 66 Humber Refinery, and lead executive in the UK, said: "While a high-quality business and asset, ICHP was determined not be a core asset for Phillips 66's business strategy. ICHP is a good solid business with strong potential in the UK electricity market."
