10 December 2008
RWE npower, Peel Energy and Denmark’s DONG Energy today announced they had formed a joint venture partnership to develop a carbon capture and storage (CCS) demonstration project in the UK.
RWE npower has taken a 75% stake in Peel Energy CCS Ltd, which was formerly jointly owned by Peel Energy and Danish company DONG Energy. The restructured joint venture, with RWE npower’s involvement, has successfully pre-qualified for the Government’s CCS Demonstration competition.
Should the project be successful in the competition, it would comprise a capture facility of up to 400MW which would form part of a new cleaner supercritical coal fired power station. It is proposed that the CO2 would then be transported to disused gas fields in the North Sea where it would be permanently stored. The project could be up and running by 2014.
The partnership between RWE npower, Peel Energy and DONG Energy brings together the expertise needed to demonstrate the whole process of ‘post-combustion’ carbon capture (PCC), transport and eventual undersea storage. Independently RWE npower has already commissioned a separate test facility at its Didcot coal-fired power station in Oxfordshire, capturing CO2 using both Post-Combustion (PCC) and Oxyfuel carbon capture methods. RWE npower is also due to begin construction of a CCS pilot plant at its Aberthaw coal-fired station in Wales next year. The plant, due to be complete in 2010 will be the first to capture CO2 direct from a commercially operating power station in the UK. DONG Energy is also actively involved in the development of CCS technology. Its CCS pilot plant at Esbjerg Power Station in Denmark, part of the CASTOR R&D project, is Europe’s largest CO2 capture facility to date and has been capturing the gas since 2005. Peel brings a heritage in engineering and experience in delivering major infrastructure projects to the partnership.
RWE npower CEO 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. Clean coal generation is vital in order for us to reconcile the often conflicting interests of security, environment and affordability, given the impending closure of many of our older power stations.” If carbon capture and storage can be proven at an industrial scale it would have major benefits, not just in the UK but also abroad where coal stations are being developed rapidly and may create opportunities for UK industry in the export of this technology, globally.
Owen Michaelson, Chairman of Peel Energy, commented: “We are delighted that first Dong Energy and now RWE npower have the confidence to invest and join with Peel Energy in the CCS Competition. Peel is committed to low carbon generation and 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.”
Bent Christensen, Senior Vice President, DONG Energy said: "We have been collaborating with Peel for some time, exploring the possibility of constructing a new power plant in the UK and it is important that we take into consideration the issue of CO2. By participating in the UK CCS competition, we can contribute to the development of CCS technology. 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. For decades, we have been building the most efficient and cleanest coal-fired power stations in the world. Our engineers are developing carbon capture techniques, because we see this as the technology of the future. This is why Europe's largest coal CO2 capture facility to date, is located at one of our power stations, capturing CO2 in the flue gases. We are attracted to the UK by a proactive attitude towards this technology."
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