Scottish Coal-fired Plant Cancelled

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Controversial plans to build a 1,852-megawatt (MW) coal-fired plant with carbon capture and storage (CCS) technology in Scotland have been abandoned.

Project developer, Ayrshire Power Limited (APL) (Glasgow, Scotland), a wholly owned subsidiary of Peel Energy (Manchester, England), claimed it was uncertain about being able to raise the finances needed to complete the Hunterston coal-fired project in North Ayrshire. The decision is another blow to the U.K. government's ambitions to become a global leader in the development of carbon capture technology for coal and gas-fired plants. This is the second major U.K. CCS project to bite the dust in the last nine months.

Last October, the country lost its leading CCS project when ScottishPower (Glasgow, Scotland) announced the closure of its project at the Longannet coal-fired plant in Scotland. It followed a government decision to no longer support it financially. Other partners in the project included National Grid, Aker Clean Carbon AS (Fornebu, Norway), and Shell UK (London, England). For additional information, see October 20, 2011, article - Scottish Carbon Capture Project Cancelled.

"Whilst we believe we have a strong case to succeed in the planning inquiry, we cannot proceed with the significant risk that the current power station design and fuel mix could not be funded and built in the necessary timetable following the grant of consent," explained Muir Miller, APL's project director. "However, we remain convinced that this project could give Scotland a superb opportunity to lead the development of full-scale carbon capture and storage, which will be vital in reducing global emissions and accords with Scottish Government policy to cut carbon emission and back-up intermittent renewable energy supplies."

He added: "We still believe that new coal-fired power stations fitted with carbon capture and storage will play an important part in plugging the energy gap until alternative sources of low carbon energy can replace fossil fuels. Hunterston remains an ideal location for such a power station. However, the timing of the economic slowdown and funding uncertainty have not worked in our favour."

Scottish Energy Minister, Fergus Ewing, said: "The decision not to take the current Hunterston coal power station project application forward at this time and to withdraw the project form the U.K. government's Carbon Capture and Storage competition is a commercial decision for Ayrshire Power Limited. The Scottish government strongly supports CCS as a critical new technology to transform the way we generate power, help reduce carbon emissions and ensure security of supply."

The Hunters ton project was already in trouble back in March when the local North Ayrshire Council, withdrew its support for the project. For additional information, see March 9, 2012, article - Scottish Coal-fired Plant Loses Local Support.

In April, the government finally green lit its long awaited CCS Commercialisation Programme, a competition for €1.2 billion ($1.6 billion) in capital funding for up to four CCS projects to demonstration level. There is also €155.5 million ($197 million) to cover. For additional information, see April 11, 2012, article - New U.K. Carbon Capture and Storage Competition Under Way.

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