Green groups slam Government in coal power funding row

by ClickGreen staff. Published Tue 10 May 2011 22:07
Government green funding shortlist is "extremely disappointing"
Government green funding shortlist is

UK Government attempts to secure millions of Euros worth of financial support for a proposed dirty coal-fired power station at Hunterston in Scotland have been challenged by environmental groups today.

WWF Scotland, Friends of the Earth Scotland and RSPB Scotland warned that the UK Government’s decision to submit Peel Energy’s proposal as one of its 12 bids to a European fund worth around EUR4.5 billion - to support carbon capture and storage (CCS) and renewable projects - could undermine Scotland’s desire to move away from polluting fossil fuels toward cleaner renewable energy sources.

The environmental groups said that the proposed Hunterston power station would only capture a small fraction of its emissions and result in a net increase in Scotland’s carbon emissions.

WWF Scotland’s Climate Policy Officer, Dr Sam Gardner said: "The UK Government's decision to submit the Hunterston coal plant for millions in European funding ignores the new SNP Government's manifesto pledge to avoid new coal.

“A new polluting power plant would undermine Scotland's ambitions to secure a low carbon economy while at the same time destroying an important wildlife site.

“The Hunterston coal proposal is not part of Scotland’s renewable future and risks diverting possible investment away from cleaner sources of energy where real economic opportunities are to be found. Funding should instead be given to the other schemes listed for Scotland that would deliver real reductions in emissions.”

Friends of the Earth Scotland’s Parliamentary and Policy Officer, Francis Stuart, added: "It's deeply disappointing that Peel's dirty Hunterston proposal is included in the list of projects seeking public money from the EU.

“We already know, not least from the 16,000 objectors to the application, that this new coal power station is vigorously opposed by the local community, would make a mockery of Scotland's climate change targets and would divert investment from renewables. We also know that it’s not needed for security of supply.

“Its time for Peel to take the message that their damaging development is neither needed or wanted, stop seeking public funding, and withdraw their application.”

RSPB Scotland’s Head of Planning and Development, Aedán Smith, said: “The proposal at Hunterston would directly damage an important wildlife site, one of the most important inter-tidal habitats on the outer Clyde, and would result in unacceptable and unnecessary additional greenhouse gas emissions, representing a backwards step in Scotland’s path to a decarbonised future.

“Scotland has enormous renewable energy potential, therefore we should be investing in clean, green, renewable technology in appropriate locations alongside improved energy efficiency measures and facilitating demand reduction, not developing new, polluting coal fired power stations.”

A coalition of local and national organisations are campaigning against the Hunterston proposal.

The Government has submitted 12 applications from UK projects to the European Investment Bank (EIB) for consideration in the next round of the EU’s New Entrant Reserve (NER) scheme – a fund worth around EUR4.5 billion to support carbon capture and storage (CCS) and innovative renewable projects across the European Union. Up to three projects may be supported per Member State.

Of the 12 applications submitted to the EIB ahead of the 9 May deadline, seven are for CCS projects and five for innovative renewable energy projects. Two CCS applications were withdrawn voluntarily by the Project Sponsors.

The EIB will now spend nine months performing ‘due diligence’ on the applications submitted to it, checking their financial and technical deliverability. After this the European Commission will verify the eligibility criteria assessment and re-confirm with Member States the public funding contribution for Recommended Projects, before making its Award Decisions.

In addition to the Peel plans, the six other CCS applications are:

* Alstom Limited Consortium: oxyfuel new supercritical coal-fired power station on Drax site in North Yorkshire;

* C.GEN: new integrated gasification combined cycle (IGCC) power station (pre-combustion with CCS on the coal-feed) in Killingholme, Yorkshire;

Peel Energy CCS Ltd: post-combustion amine capture on new supercritical coal-fired power station in Ayrshire, Scotland;

* Don Valley Power Project (formerly known as the Hatfield Project): new IGCC power station in Stainforth, Yorkshire;

* A consortium led by Progressive Energy Ltd; pre-combustion coal gasification project in Teesside, North East England;

* Scottish Power Generation Limited: post-combustion amine capture retrofitted to an existing subcritical coal-fired power station at Longannet, Scotland; and

* SSE Generation Limited: post-combustion capture retrofitted to an existing CCGT power station at Peterhead, Scotland.

The Government says it is committed to continuing public sector investment in four CCS projects and aims to launch a selection process to identify projects for UK funding later this year.

The five innovative renewable applications are:

* POWER (Pentland Orkney Wave Energy Resource) which will deploy Aquamarine Oyster and Pelamis wave energy converters off the coast of the Orkneys;

* Kyle Rhea Tidal Turbine Array which will deploy Marine Current Turbines “SeaGen” devices in Kyle Rhea, Islay;

* MeyGen Tidal Stream Project which will deploy Atlantis Resources and Rolls Royce/Tidal Generation tidal turbines in the Pentland Firth Inner Sound;

* Scottish Power Renewables Sound of Islay Demonstration Tidal Array which will deploy Hammerfest Strom tidal turbines in the Sound of Islay; and
* Blyth Britannia which will deploy Clipper Wind Power 10 MW Offshore Wind Turbines off Blyth in Northumberland.

Energy Minister Charles Hendry said: “I am very encouraged by the strength and breadth of the UK applications for this round of NER funding, with all the projects received by DECC meeting the eligibility criteria.

“They demonstrate that the UK is at the cutting edge of low carbon energy development, ranging from CCS to wave, tidal and offshore wind.

“Taking forward these sorts of technologies will be crucial to our move to a low carbon economy, providing green jobs as well as helping us lower emissions and increase energy security.”






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