Centrica Cancels 2,000-Megawatt Gas-Fired Plant

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--U.K. energy company Centrica plc (OTC:CPYYY) (Windsor, England) has postponed plans to construct a 2,000-megawatt (MW) combined-cycle gas turbine (CCGT) plant in central England.

The proposed Brigg 2 power station was to be located at the site of the existing Glanford Brigg power station, near the town of Brigg in north Lincolnshire. The older CGGT plant was commissioned in 1993 and has a generating capacity of 260 MW.

Centrica confirmed that it is not planning to make a formal application to build the new power station to the Infrastructure Planning Commission (IPC), the institution that oversees all power planning applications in the U.K. with a generation capacity in excess of 50 MW. A spokesperson for the company said it withdrew its initial application for the plant from the IPC in December.

"We are now assessing a number of options, including further investment to extend the life of the existing plant," a Centrica spokesman told news services. The new plant was set to replace the ageing Glanford Brigg power station, which will be decommissioned after 2018.

Centrica has not given any reasons for its decision to shelve the Brigg 2 power station, although weak power demand and the recession may be key factors. Centrica's decision to pull the plug on the large-scale, gas-fired project is not the only one in the past year. In May 2010, E.ON AG (OTC:EONGY) (Dusseldorf, Germany) decided not to go ahead with the planned 1,200-MW Drakelow CCGT plant in Staffordshire, England, and Scottish and Southern Energy plc (OTC:SSEZY) (SSE) (Perth, Scotland) delayed the proposed 874-MW Abernedd gas-fired plant at Baglan Bay in Wales until 2015. Both companies cited weak power demand brought about by the global economic recession. For additional information, see May 27, 2010, article - Two Gas-Fired Plants Postponed in U.K.

At Brigg, Centrica had planned to construct four single-shaft gas turbines, air-cooled condensers, turbine hall, heat recovery steam generator and stack, with a total generating capacity of approximately 2,000 MW. It would have been located alongside the existing plant and a proposed hay-burning facility that would generate 35-40 MW. Plans were also in place for the future construction of a carbon capture and storage (CCS) facility. The efficiency rating of the Brigg 2 power station was estimated to be more than 55%. The facility had an estimated life of 25 years.

"Changes to the current mix of energy-generating plants will occur as a large number of existing oil, coal and nuclear power stations close over the next 10-15 years due to the requirements of the European Large Combustion Plant Directive and/or as plants reach the end of their operational lives," Centrica stated in its environmental impact assessment scoping report for the project. "Projections quoted in the Draft Energy NPS indicate 22 gigawatts of electricity generating capacity will close over this period. This creates a significant need for new major energy infrastructure. The long lead-in for new nuclear power stations means that new fossil fuel and renewable generating capacity will need to be progressed relatively quickly to meet demand."

Last April, Centrica commissioned the 885-MW Langage combined-cycle power station near Plymouth, in southwest England. For additional information, see February 22, 2010, article - Langage 885-Megawatt Power Station to Begin Commercial Operation in Southwest England.

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