UK: RWE unveils plans for new £1bn coal-fired power station

RWE, the German utility which owns British energy supplier npower has unveiled plans to build a £1bn coal-fired power station at Tilbury to replace existing capacity which is being closed down over the coming years.

The new plant, which will be capable of generating some 1,600 megawatts of power, will use cleaner coal technology which would cut emissions by more than a fifth compared with traditional coal-fired power generators and would also have the capability to add on carbon capture and storage capacity.

Drax in Yorkshire, which was commissioned in 1974, was the last new coal-fired power station to be built in Britain with coal subsequently taking a back seat to gas, which produces less carbon dioxide, as the generators' fuel of choice. However, increases in the price of gas and concerns that companies needed to develop diversity of supply have pushed coal back up the agenda.

Both Centrica and E.ON, which owns Powergen, have plans for new coal-fired capacity. Andy Duff, chief executive of RWE npower said: "Coal is a vital component of the UK's future generation mix, but the environmental impact must be addressed.

"A 'supercritical' coal plant on its own would result in a significant net reduction in CO2 levels, but we have also chosen to make the power station ready for carbon capture and storage technology.

"At this time, there are still many financial, legal, regulatory and technical hurdles to clear on CO2 transportation and storage technology.

"However, it is too important to ignore and we are committed to further research and development and are assessing our next steps in this area."

The announcement came as the government unveiled its climate change bill which sets a target of reducing Britain's greenhouse gas emissions by 60% by 2050. An npower spokeswoman said the company needed new generating capacity to replace existing capacity which will be taken out of service between 2008 and 2015 as new European Union regulations on emission levels from power plants come into effect.

Npower has already announced plans for three new wind farms and a new gas-fired plant but is expected to reveal further investments to maintain its share of the UK's generating market at around 11%.

The spokeswoman said the new coal-fired plant fitted in with the government's climate change goals because it would lead to lower emissions and, by increasing fuel diversity, improve security of energy supply.

Source: The Guardian