Powerfuel deal saves carbon capture project
A PIONEERING project that could establish Yorkshire’s reputation for carbon capture and storage has been saved after the company behind it was bought by 2Co Energy.
The future of the Hatfield Carbon Capture and Storage (CCS) project was put in doubt when parent company Powerfuel was placed in administration last year.
Administrators KPMG have now completed the sale of Powerfuel Power and the project to 2Co Energy in a deal which will release around £160m in EU funding,
2Co Energy chief executive Lewis Gillies said: “Given the political commitment to CCS in the UK and the EU we are extremely pleased to be able to step into this project.
“Using coal so that it has a low carbon footprint meets energy security needs as well as CO2 emissions reduction targets.
“Equally importantly, the potential for using CO2 for enhanced oil recovery could help meet UK fiscal needs as it would bring access to taxation revenue from extra North Sea oil production and significantly reduce the overall cost of CCS to the UK.”
The scheme will, be renamed the Don Valley Power Project and promises to generate 900 megawatts and store up to 5m tonnes of CO2 a year below the North Sea.
Brian Green, joint administrator of Powerfuel plc and northern KPMG restructuring partner, said: “It is extremely pleasing to have completed the sale of this CCS powerplant development, enabling the region to again stake a claim to being the home of innovation in this form of low carbon power generation, with the associated potential for economic opportunities for the region.”
