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Released July 09, 2015 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Leading utility E.ON (XETRA:EOAN) (Düsseldorf, Germany) has announced the closure of its 900-megawatt (MW) Killingholme combined-cycle gas-turbine (CCGT) power station in the U.K. with the loss of about 50 jobs.
The company blamed the decision on its failure to win a power contract from the National Grid's Supplemental Balancing Reserve (SBR) service. E.ON threatened to shut Killingholme in March after it failed to win support in the Capacity Market Auction, which was conducted by the U.K.'s grid operator, National Grid. For additional information, see March 23, 2015, article - E.ON Pulls Killingholme Gas-Fired Plant From Service.
"My main priority is our colleagues at Killingholme, and we will continue to do all we can to help them through this difficult and uncertain time," said Tony Cocker, chief executive of E.ON UK. "We would also like to thank everyone who has made a contribution to Killingholme throughout its lifetime--from the time the power station was a plan on a drawing board, through to the team that will continue at the site in the months ahead to ensure it remains safe and secure."
He added: "Ultimately, the decision to close the power station is not one we have taken lightly and, as our actions have shown, we have exhausted every possible option to try to keep the plant viable. The reality, however, is that market conditions for both gas-fired electricity generation and coal-fired are very challenging, and in this particular case too big to overcome, which has resulted in 900 MW of generation capacity being permanently removed from the U.K.'s power network."
Killingholme consists of two 450-MW units. It was mothballed in 2002 but was brought back online in 2005, becoming the first power plant in the U.K. to be successfully returned to service following mothballing.
E.ON's decision comes just weeks after two other U.K. gas-fired plants won short-term reprieves from imminent closure after securing a 10-month work contract under the Supplemental Balancing Reserve (SBR) service. The Killingholme and Brigg power stations, also in Lincolnshire, England, are owned by Centrica plc (OTC:CPYYY) (Windsor, England) and have generating capacities of 665 MW and 244 MW, respectively. Both were facing closure if they failed to win contracts. For additional information, see June 23, 2015, article - Two U.K. Gas-Fired Plants Win Reprieves.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
The company blamed the decision on its failure to win a power contract from the National Grid's Supplemental Balancing Reserve (SBR) service. E.ON threatened to shut Killingholme in March after it failed to win support in the Capacity Market Auction, which was conducted by the U.K.'s grid operator, National Grid. For additional information, see March 23, 2015, article - E.ON Pulls Killingholme Gas-Fired Plant From Service.
"My main priority is our colleagues at Killingholme, and we will continue to do all we can to help them through this difficult and uncertain time," said Tony Cocker, chief executive of E.ON UK. "We would also like to thank everyone who has made a contribution to Killingholme throughout its lifetime--from the time the power station was a plan on a drawing board, through to the team that will continue at the site in the months ahead to ensure it remains safe and secure."
He added: "Ultimately, the decision to close the power station is not one we have taken lightly and, as our actions have shown, we have exhausted every possible option to try to keep the plant viable. The reality, however, is that market conditions for both gas-fired electricity generation and coal-fired are very challenging, and in this particular case too big to overcome, which has resulted in 900 MW of generation capacity being permanently removed from the U.K.'s power network."
Killingholme consists of two 450-MW units. It was mothballed in 2002 but was brought back online in 2005, becoming the first power plant in the U.K. to be successfully returned to service following mothballing.
E.ON's decision comes just weeks after two other U.K. gas-fired plants won short-term reprieves from imminent closure after securing a 10-month work contract under the Supplemental Balancing Reserve (SBR) service. The Killingholme and Brigg power stations, also in Lincolnshire, England, are owned by Centrica plc (OTC:CPYYY) (Windsor, England) and have generating capacities of 665 MW and 244 MW, respectively. Both were facing closure if they failed to win contracts. For additional information, see June 23, 2015, article - Two U.K. Gas-Fired Plants Win Reprieves.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. To contact an office in your area, visit the Industrial Info "Contact Us" page.
