20 November 2008
Peel Energy, a subsidiary of UK real estate, transport and infrastructure group Peel Holdings, and its partner DONG Energy, Denmark’s largest energy company, have announced that they are exploring the possibility of gaining planning permission to develop a multi-fuel power station at Hunterston in Ayrshire. The site is adjacent to the existing coal import terminal which is owned and operated by Clydeport, part of Peel Ports.
The proposed power station, which would be powered by coal and up to 15% biomass, would use state-of-the-art technology to deliver the highest standards of efficiency. On coal alone, the new technology would reduce carbon emissions by up to 25% compared to conventional coal-fired power stations. It would also be ready to incorporate Carbon Capture and Storage (CCS) technology at the earliest opportunity, giving it the potential to capture up to 90% of the carbon emissions. The team is exploring the possibility of a 1600 MW multi-fuel power station which could provide electricity to meet the average needs of up to 2 million Scottish homes.
Owen Michaelson, Chairman of Peel Energy, said:
“This is a really exciting proposal to satisfy Scotland’s energy needs. The Hunterston site is ideal, as it already handles a large proportion of Scotland’s imported coal. It makes perfect sense to build a new power station there avoiding the need to transport millions of tonnes of coal a year across the country.
“Scotland is facing a severe shortfall in electricity as demand continues to grow and old coal and nuclear power stations are decommissioned over the next decade. Peel Energy is also developing renewable energy facilities, but these will not meet the growing gap in ‘base-load’ capacity.”
Jens Kragholm, Project Manager, DONG Energy, continued:
“We are at a very early stage in the process, and just starting the initial environmental investigations based on an outline design. We will undertake a widespread public consultation exercise to ensure that all local communities in the area and wider stakeholders have the opportunity to input into our plans before developing a full planning application.”
Brian Wilson, former Energy Minister, who is acting as a Policy Advisor to the team, said:
“If these plans are developed this venture would see Scotland lead from the front on this key issue. This new technology has the ability to provide us with secure electricity into the future with minimal impact on our environment.“
In addition to their plans for Hunterston, the Peel and DONG Energy team are one of the three bidders remaining in the UK Government’s Department for Energy and Climate Change (DECC) CCS Demonstration Competition. The competition is to support a demonstration of the full chain of CCS technologies to include capture, transport and storage of carbon dioxide from a coal fired power station on a commercial scale.
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