RWE nPower muscles in on UK carbon capture & storage competition.
RWE npower, which was not included in a shortlist of three consortia for the government's competition earlier this year, has bought a 75% stake in the Peel Energy group that was shortlisted. The group, which also includes Danish firm DONG Energy, have now announced a joint venture partnership to set up a new "cleaner supercritical coal-fired power station" by 2014. It is proposing to transport captured carbon from the plant to disused gas fields in the North Sea.
As with all the projects within the UK demonstration project, the group must use "post-combustion" technology to capture 90% of the greenhouse gases from the coal plant. This technology involves carbon dioxide being scrubbed from the emissions after coal has been burned to generate energy.
The UK competition currently has the Peel group shortlisted along with proposals from E.ON for a plant at Kingsnorth, Kent, and ScottishPower, which is bidding to develop a plant at Longannet, Fife. It is thought the successful bidder could gain as much as £1 billion of public funding to support a 300MW to 400MW plant.
RWE npower
German-owned RWE, which had been considering legal action to force the government to include it within the CCS competition, has already commissioned a test facility at its Didcot coal plant in Oxfordshire to look at post-combustion CCS.
The firm is due to begin construction of a CCS pilot plant at its Aberthaw coal-fired power station in Wales next year, which is scheduled to be completed in 2010.
RWE npower chief executive Andrew Duff said: "Energy companies cannot commit to commercial investment in CCS on a new power station until the technology is proven and seen to be economically feasible. This could be a major barrier to the construction of much needed new build power plant and so this project is vital to unblocking the potential for coal to play its part in the UK's long term energy mix."
Npower said "clean" coal generation was "vital" for energy security, affordability and to tackle the environmental impact of energy in the UK as older power stations close. The firm also pointed out that the development of the technology at an industrial scale could see the UK industry exporting its expertise abroad.
DONG
Danish state-owned DONG Energy also has CCS experience already, through its CCS pilot plant at the 400MW Esbjerg power plant on Denmark's North Sea coast. This is Europe's largest facility to date to capture its carbon dioxide emissions, using solvents to remove the greenhouse gas from the plant's flue gas since 2005.
Bent Christensen, DONG Energy's senior vice president, said: "We are looking forward to working with RWE npower as part of this new partnership concerning CCS technology. Our combined expertise and commitment to this technology represent a strong and compelling proposition."
Mr Christensen said his company was attracted to the UK by its "proactive attitude" towards CCS technology, adding: "Our engineers are developing carbon capture techniques, because we see this as the technology of the future."
Peel
Peel Energy is part of Manchester-based property and infrastructure company Peel Holdings, and has a development portfolio of 3GW of generation capacity, including a 450MW wind portfolio and a 95MW energy-from-waste plant proposed for Ince in Cheshire. The company also has ambitions to develop a large tidal range project in the Mersey estuary.
The company's chairman, Owen Michaelson, said DONG Energy and RWE npower were demonstrating confidence in Peel Energy's bid for the UK CCS competition. He said: "We are determined to be at the forefront of developing the know-how to capture and permanently store CO2 from coal-fired power stations. We have always seen this as an immense challenge requiring a very strong and wide ranging partnership. We believe we have now created the foundation of that partnership with Dong Energy and RWE npower and we thoroughly look forward to working with them and the government towards a cleaner way of generating energy for future generations."
Click here to make an online enquiry regarding our services.
or call 01603 864796 (during office hours)
-
Pilot Tidal Energy Scheme for North Wales Coast
Conwy County Borough Council has backed plans for a pilot tidal energy scheme off the North Wales Coast.
The £150 million scheme at Llanddulas in North Wales would provide a testing facility for turbine designers and manufacturers, and assess the environmental impact of turbines.
The project was given approval by the council as part of a strategic regeneration strategy for the Conwy coast, prepared by consultant Capita Symonds.
Paul Terry, Capita Symonds, said: "Tidal power will play a key role in providing a sustainable energy source for future generations. The North Wales coast is an ideal place for such a scheme as it’s blessed with a good tidal range and suitable ocean depth." He added that the project could also help protect the coast from rising sea levels, storm surges and coastal erosion.
The regeneration strategy also calls for seven new visitor centres costing £30m should be built at key locations stretching from Conwy to Rhuddlan. But North Wales Tourism chairman Chris Jackson raised doubts over whether the proposals could realistically be funded in the current economic climate. The council’s approval now means that Capita Symonds will seek funding for feasibility studies and investigations to develop a business case for the scheme.
-
Micro-generation forms key part of Government's vision.
Climate Change Minister, Greg Barker, has launched a consultation on the Government's strategy to boost energy self-sufficiency in communities.
The public debate about microgeneration will look at ways to ensure the quality of generating technology and its installation, how to improve available products, and how to develop the microgeneration supply chain while providing more accessible advice.
The consultation follows last week's news that the Government is to overturn a ban on councils selling "green" electricity back to the national grid by the end of the year.
Mr Barker said“I want to see more homes, communities and businesses generating their own energy. We can literally bring power back to the people.Microgeneration is a key part of this vision.
“By becoming more self sufficient we can create sustainable local energy economies. People and communities can save money on their fuel bills at the same time as generating an income and cutting carbon. I want to work with industry to overcome the challenges it is facing. Together we will create a marketplace for jobs and prosperity alongside products and advice which people trust.”
More information can be found on the Microgeneration Strategy consultation web page
-
Green policies could hit UK manufacturing hardest.
A report from the think-tank Civitas warns that the increasing cost of energy, which has been driven up as a result of green policies could hit the UK's manufacturing sector - just as the country needs industry to help boost the economy.
The report said efforts to tackle climate change through cutting greenhouse gas emissions and increasing renewable energy generation could significantly push up energy bills for business.Extra costs are put on energy from policies including the EU's emission trading scheme, the renewables obligation to boost investment in technology such as wind power, and the climate change levy which taxes energy use in businesses and the public sector. Also, the Labour Government's climate change strategy had already added an extra 14% on homeowners' electricity bills and 21% on business bills.
Last year's renewable energy strategy could have created "surcharges" of up to 70% for businesses, and 33% for domestic customers by 2020, the report from Civitas claimed. The study warns the new coalition Government's energy policy could be as damaging to manufacturing industry as the previous administration.
The review by economist Ruth Lea and Jeremy Nicholson, director of lobbyists the Energy Intensive Users Group, said the UK was badly placed to meet its commitments to boost renewables as it was starting from such a low base. Even without the extra costs imposed to pay for climate change policies, Britain has high industrial electricity prices, which threaten its competitiveness.
Ms Lea said: "The economy desperately needs a competitive and thriving manufacturing sector if it is to prosper. Competitive energy prices are vital to the success of manufacturers, especially energy intensive users.Government energy policies are, however, remorselessly driving up energy costs thus risking the 'migration' of manufacturing plants to economies where the costs are lower."
