Region one step closer to winning €180m funding for UK’s first Carbon Capture and Storage Project

20/10/2009

Powerfuel Plc’s proposed power plant in Yorkshire is a step closer to winning €180m funding from the European Commission for the development of carbon capture and storage (CCS) technology, bringing thousands of jobs to the region.

Powerfuel’s Hatfield site near Doncaster has been recommended as a potential candidate for funding and has beaten off rival schemes from E ON at Kingsnorth, RWE at Tilbury and Scottish Power at Longannet for the CCS demonstration project. The recommendation requires approval from Members of the European Parliament.

Tom Riordan, Chief Executive at Yorkshire Forward, commented;

“This is great news for the region - There is no better place to do carbon capture and storage than Yorkshire and Humber. Securing the first project is a vital step in developing a region wide CCS cluster. We strongly support the initiative Powerfuel has taken and we look forward to working with them in delivering our vision for carbon capture and storage in the region. This decision catapults our region on to the global stage as a leader in demonstrating commercial scale CCS.

“Nowhere in Europe has such a large number of power stations so close to safe carbon storage in depleted gas fields in the North Sea, and the region has access to proven technology and engineering skills.  We have the potential of storing up to 10% of the UK’s carbon emissions, creating thousands of jobs and creating an infrastructure that could attract energy intensive industries that want a solution for their carbon emissions.”

Richard Budge, Chief Executive of Powerfuel commented;

“We are delighted that our application for the European Economic Recovery Package funding has been successful and would like to express our gratitude to all those who have supported our project since 2002.  Initially Doncaster MBC and Yorkshire Forward, who have been very instrumental in identifying the benefits of the Humber cluster and the potential for environmental improvement and to local MP’s, MEP’s and the Government who are seeking to put the policies in place which will accelerate the expansion of the carbon capture storage industry resulting in significant environmental benefits.”

Rosie Winterton MP, Minister for Yorkshire commented;

“This is a welcome step in the approval process of a larger package of proposals to aid economic recovery in Europe. Today’s development is the result of hard work by the Government, the Regional Development Agency Yorkshire Forward, Powerfuels and the National Grid.

“A carbon capture and storage project at Hatfield will ensure that Yorkshire and The Humber is leading the way in clean coal technology.  It will bring huge economic benefits to our region and shows our commitment to cutting carbon emissions and dealing with this global issue”

The 900 megawatt plant will use CCS technology, which involves liquefying carbon dioxide emissions by burning fossil fuels and then pumping it out to depleted gas fields.

Hatfield’s location is ideal for developing a CCS Cluster because of its proximity to a large number of power stations that are close to depleted gas fields in the North Sea where carbon can be safely stored and within 15 years could cut CO2 emissions by up to 60 million tonnes in the region.

Yorkshire Forward has been working closely with Powerfuel and the National Grid to develop part of scheme to build a network of CO2 pipelines linking power stations and major industrial installations across Yorkshire and Humberside.

Five other European sites have been selected for CCS funding in – Germany, the Netherlands, Poland, Spain and Italy. The funding will come from the European Commission’s energy programme recovery fund, which is allocating €1.05bn to CCS, as well as €1.75bn earmarked for better international energy links.

Tom Riordan continued; “This level of EU funding to the region could unlock considerable investment from the private sector to implement the first phase of a network. The prospect of beginning the construction of a network in the next two years would make a considerable contribution to pulling the region out of the current economic downturn.  This decision leaves Powerfuel and the region well placed to establish the world’s largest complete CCS project.”

Notes to editors:

Yorkshire Forward

  • Yorkshire Forward is the Regional Development Agency behind the economic regeneration of Yorkshire and Humber. It aims to make a positive difference by investing in jobs, improving towns and cities, and in supporting businesses throughout the region.
  • Yorkshire Forward’s investment across the region is maximised by attracting European Regional Development Funding.
  • For further information, images or to arrange an interview, please contact Laura Scholey, Press Manager on 0113 3949540 or email laura.scholey@yorkshire-forward.com