Vitol backs Irish gas power plant

VPI Holding, a UK-based power subsidiary of Vitol, has struck a joint venture with flexible power plant developer Lumcloon Energy to deliver a 275MW open cycle gas turbine power plant in Ireland's County Westmeath.

Vitol, which announced the deal July 13, will take a 51% equity share in the power plant, which has already successfully bid for a 10-year capacity tender through Ireland's regulated power supply auction.

The power plant has been granted planning approval, with construction expected to start next year. It is expected to help facilitate Ireland's energy transition, enhancing security of supply during peak energy demand as an alternative to renewable energy, when Irish wind farms are generating insufficient output.

David Brignall, head of generation at VPI, said: "VPI is already one of the leading operators of Combined Cycle Gas Turbine (CCGT) assets in the UK, and this joint venture will allow us to bring our expertise and experience to this exciting project.

"The creation of a 275-MW OCGT will provide flexibility to meet the demands of Ireland’s consumers and ensure security of supply at times of peak demand.”

Lumcloon Energy, headquarters in Tullamore, Ireland, specialises in early stage Irish power plant projects, including the country's largest portfolio of battery energy storage systems. VPI is investing more than £2bn ($2.4mn) over the next five years in energy transition objectives. 

The partnership will support VPI's planned energy transition programme, valued at more than £2bn over the next five years, which will augment its existing 3,300 MW of CCGT generation capacity. As part of these plans, VPI is building 350MW of new build capacity due to come online from 2024.