Commercial Property News

Peel Holdings’ Ayrshire Power Ltd. planning application for a £3 billion coal-fired power station fitted with novel carbon-capture technology, which could be operating by 2017, is being challenged by environmental groups.

The public consultation period for the proposed  plant at Hunterston, North Ayrshire, closes on August 20th. Hunterston already has an EDF operated "B" nuclear power station and a defunct Magnox "A" unit nearby, this development would use it's distribution infrastructure if the B unit is not replaced. The "B" unit is an AGR type which has suffered from cracking in it's reactor and is due to remain in service until 2016.

“This polluting plant is now being opposed locally, nationally and internationally and will face a very rough ride through the planning process,” Richard Dixon, director of WWF Scotland said in a statement.

Ayrshire Power Ltd.’s proposed 1,600-megawatt plant would eventually be able to trap 90% of its carbon-dioxide emissions for underground burial, according to information on Peel Holdings’ website. The station would be capable of burning up to 14% biomass such as wood along with the coal.

“This is a project of international significance, and it is important that members of the public have the opportunity to express their views, and we are pleased that they are doing so,” Mike Claydon, project manager, Ayrshire Power said. The project would demonstrate large-scale use of carbon-capture technology, which could then be “rolled out across the world” he said.

Peel Holdings owns Clyde Port, a coal import facility adjacent to the site, that would be used to ship fuel from around the world to the power station. The Hunterston power station is Peel’s first coal plant project, the carbon capture technology is the brainchild of design partner Dong Energy, which has a demonstration plant in Esbjerg.

“People have no confidence in this company protecting the environment or responding to local concerns,” Tim Cowen, a local resident and founder of a local opposition group, said yesterday.

Peel hasn’t explained how and where it would transport and store the carbon-dioxide, he said. “The company refused all offers to discuss the project in a public forum,” he said.

Coal-fed power stations produce about twice the amount of carbon-dioxide of natural gas-fueled plants. Carbon capture technology has yet to be proven on a commercial scale and first needs to be tested. This would involve siphoning off a portion of CO2 and piping it underground for permanent storage to prevent the greenhouse gas from entering the atmosphere.

The U.K. has a target of cutting CO2 emissions 34% by 2022 from 1990 levels. About a third of Britain’s power stations are due to shut over the next decade because of environmental legislation and as they reach the end of their useful lives. The nation needs to invest about £200 billion in energy infrastructure to meet energy demand and curb emissions.

“We urge the Scottish government to consider the views of people not only in this country, but also from abroad, whose lives could be seriously affected by the damaging effects of climate change,” Dixon said, ignoring the issue of replacing one quarter of Scotland's electricity supply presently generated at Hunterston "B" from 2016.

In competition with the Peel plans, E.ON AG had proposed a coal-fed power station next to its existing plant at Kingsnorth in Kent, southeast England. The energy company is awaiting U.K. government approval of its plans and said it would delay deciding for three years until the economy improves, whether to proceed. E.ON is in the running with Iberdrola’s Scottish Power to receive U.K. government funding for its carbon capture plans.