E.ON delay plans for Kingsnorth by up to three years
Thursday 08 October 2009
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| Kingsnorth is already home to a dual-fired power station |
Energy giant E.ON has revealed that it has delayed plans to build a new 1940MW coal-fired power station at Kingsnorth - which was set to involve carbon capture and storage (CCS) technology - due to a fall in demand for electricity as a result of the global recession.
The extension to the existing dual-fired power station in Kent was expected to house an 800MW CCS system but E.ON has now been forced to pull out of investing in the plant for up to three years - blaming the state of the economy.
But, the Department of Energy and Climate Change has stressed that the proposed development is still in the running for government funding to develop CCS on a commercial scale, under its Carbon Capture and Storage Demonstration competition.
Confirming the delay to the project in a statement today (October 8), the German-owned firm said: "We can confirm that we expect to defer an investment decision on the Kingsnorth proposals for up to two to three years. This is based on the global recession, which has pushed back the need for new plant in the UK to around 2016 because of the reduction in demand for electricity."
"As a Group, we remain committed to the development of cleaner coal and carbon capture and storage (CCS), which we believe have a key role to play alongside renewables, gas and nuclear, in tackling the global threat of climate change while ensuring affordability and security of energy supplies," it added.
CCS funding
E.ON had planned to install an 800MW CCS system at Kingsnorth and was shortlisted for funding from European Energy Programme for Recovery Fund, which is set to allocate €1 billion (£867 million) for CCS schemes across Europe, including €180m (£156m) to be given to one project in the UK.
However, earlier this week it was revealed that it looked set to miss out on the funding, with Powerfuel's coal gasification plant in Hatfield tipped to get the £156 million for a 900MW CCS system (see this NewEnergyFocus story)
Kingsnorth is also one of three contenders in the running for UK government funding in a Carbon Capture and Storage Demonstration Competition - launched in November 2007 - with the winner set to develop CCS on a commercial scale by 2014.
Commenting on how E.ON's decision will impact on Kingsnorth's chances in the competition, a spokesperson for the Department of Energy and Climate Change (DECC), said: "E.ON's decision to delay a decision on their proposed project is a response to the global economic situation. Nothing has changed with our CCS competition, E.ON has not withdrawn."
Reaction
Environmental campaigners and the Liberal Democrats have welcomed the decision by E.ON to delay investment in Kingsnorth, claiming "dirty coal power stations" should not be built.
Liberal Democrat energy spokesman, Simon Hughes, said: "This is a deserved victory for environmental campaigners across the UK. We are facing the very real threat of catastrophic climate change that will impact all of our lives. If the Government takes this seriously it cannot build new dirty coal power stations."
"Liberal Democrats will only support new coal if carbon capture and storage technology is ready from day one. Funding for CCS demonstration must be focussed on retrofitting existing power stations," he added.
Friends of the Earth's executive director, Andy Atkins, also backed the decision and called for the government to only support coal plants fitted with 100% CCS from the start of the process.
He said: "We're delighted that E.ON has shelved its Kingsnorth plans - we should be investing in clean energy sources not building new dirty coal-fired power stations."
"Plans to build this power plant have seriously undermined the UK's credibility on climate change ahead of crucial talks in Copenhagen. The Government must now show real leadership and say no to all new coal plants which aren't fitted with 100% carbon capture and storage from day one," he added.
The government launched a consultation in June which recommended the retrofit of CCS technology to all new coal-fired power stations within five years of it being proven (see this NewEnergyFocus story)
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