£750M power station project in doubt

£750M power station project in doubt

A £750 million coal to biomass project at Eggborough power station in Yorkshire has been thrown into doubt following a government decision not to include it in the list of low carbon projects to receive an ‘early’ green subsidy.

 

A list of 10 low carbon projects to get subsidies was announced by the Department for Energy and Climate Change on Thursday. Eggborough, which generates 4% of the UK’s electricity, says it may have to close as carbon taxes and new environmental legislation will make the coal fired plant uneconomic and unable to supply to the national grid after 2015.

 

The company planned a £750 million conversion to run its boilers on biomass, wood pellets, but this is not viable without the subsidy. Company chairman Neil O’Hara said the project would have to be reassessed. Eggborough had hoped to receive a subsidy called an ‘investment contract’ which is designed to bridge a gap between new low carbon subsidies called ‘contracts for difference’ (CFD) which were confirmed in the Energy Act, kick in.

 

The Energy Act, which confirms government plans to invest £110Bn in new energy infrastructure, received Royal Assent on Wednesday this week. This investment is heavily weighted towards offshore wind farms and nuclear power stations. 

 

Eggborough was one of 16 projects that qualified for this early subsidy, but the government has decided to subdivide that list by technology type and select a limited number of projects from each of those groups. The list of successful projects includes three offshore wind farms being developed by Dong Energy of Denmark and another power station project at Drax, also in Yorkshire, which is converting three of its six power units from coal to biomass.

 

Eggborough can still qualify for the CFD when the system comes into operation sometime next year, but the company says this might be too late. 

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

Costain and Motts win key Stonehenge Tunnel role

Costain and Motts win key Stonehenge Tunnel role

Plans for the A303 Amesbury to Berwick Down scheme would see a 3.2km tunnel built under the National Heritage Site, 50m away from the current route of the A303.   National Highways has now awarded its £60M Delivery Assurance Partner contract to Costain and Mott MacDonald. The two

Multi-million-pound rail investment at the Port of Southampton

Multi-million-pound rail investment at the Port of Southampton

Associated British Ports (ABP), the UK’s leading ports group and Solent Stevedores have announced a joint investment of £17.5 million in a new container offering for deep sea shipping lines at the Port of Southampton.    The project will create an 18-acre facility, which

HS2 offers free training to help jobseekers get into Construction

HS2 offers free training to help jobseekers get into Construction

College leavers and West Midlands residents who want to start a career in construction have just one week left to sign up for HS2’s free job training programme.   The accredited construction training course, which takes just 6-8 weeks to complete, is open to residents aged 18 and over

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.