By JR on Tuesday, December 14, 2010
Powerfuel, which is developing the UK’s first commercial scale clean coal power plant, has gone into administration because of the crippling cost of the project.
Richard Fleming, joint administrator, said: “Developing low carbon energy generation requires a large amount of capital upfront and the CCS development falls £635m short of the investment needed to progress the project beyond the preliminary stage. It needs moving on to a new owner with deeper pockets.” ....
The administration is also a blow for CCS technology, which the UK and EU see as vital to meeting targets to cut greenhouse gas emissions. Only last week Powerfuel Power announced plans to build a pilot gas power plant with a new CCS technology. However, industry experts warned that few private operators would go ahead without more government support.
The government is running a competition for up to £1bn in subsidies. A consortium led by Scottish Power is the only bidder after Eon pulled out saying the market was “not conducive”.