Powerfuel looks set to beat off competition from three other UK companies to receive £156 million in funding from the European Commission in a massive boost to its plans for a 900 MW carbon capture and storage (CCS) system at its coal gasification plant in Hatfield, Yorkshire.

A European Parliament source told NewEnergyFocus yesterday (5 October) that Powerfuel plc is likely to be awarded the money from the European Energy Programme for Recovery fund - managed by the European Commisssion. It is set to allocate €1 billion (£867 million) for CCS schemes across Europe, with €180m (£156m) being given to one project in the UK.

The final results are yet to be published because member states have two weeks - beginning last Thursday (1 October) - to object to the commission's proposal before it goes to the European Parliament for approval.

CCS is a potentially important technology which could help reduce emissions around the world
Ricahrd Dixon, WWF ScotlandThe Hatfield plant currently has a 900 MW integrated coal gasification combined cycle power system (see this NewEnergyFocus story). Yorkshire coal company Powerfuel plc was unable to comment before any official announcement.

The three other UK proposals eligible for the fund were:

Kingsnorth - E.ON planned for an 800MW CCS system at the 1940 MW dual-fired power station in Kent;
Tilbury - Tilbury Green Power Ltd planned for a 1600 MW CCS project at the power station in Essex;
Longannet - ScottishPower planned to develop a 3390 MW CCS system at the power station in Fife.
Consequently, environmental group WWF Scotland have expressed disappointment that Longannet - a 2.3 GW coal-fired power station in Fife - was looking unlikely to receive the funding.

Director Richard Dixon said: "It is disappointing Longannet has not been chosen this time around. We sincerely hope it will get some form of support to properly test this technology soon, whether it is from Europe or as a winner of the UK Government's own CCS competition."

"The world urgently needs technology that will reduce our climate emissions and Scotland is very well placed to take a global lead in this important field. The power sector is responsible for more than a third of Scotland's CO2 emissions, most of it from burning coal. CCS is a potentially important technology which could help reduce emissions around the world," he added.

The UK is holding a Carbon Capture and Storage Demonstration Competition - launched in November 2007 - with the winner set to develop CCS on a commercial scale by 2014.

Tuesday 06 October 2009