A CLEAN coal power station which could create hundreds of jobs in Doncaster could be back on track.
Green power firm 2CO has competed a buyout of the company behind the plans, Powerfuels Power, which went into administration late last year, derailing the scheme.
The firm has also lifted the suspension of the 180 million Euro grant from the EU which was in place since Powerfuel’s parent company went into administration, and put a financial guarantee in place to allow the first phase of the money to be released.
It follows the announcement a buyer had been found for Hatfield Colliery last week, securing the jobs of its 400 staff.
The project aims to capture the carbon dioxide produced by burning coal at the power station and pipe it out into storage under the North Sea bed.
It will now be renamed the Don Valley Power Project.
Lewis Gillies, chief executive of 2CO Energy said: “Given the political commitment to carbon capture and storage 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 targets.”
He also believes pumping the carbon dioxide into oil fields will allow for more of the oil reserves to be extracted, with up to 15 to 20 per cent more able to be removed from wells by blowing the gas into the oil fields.
Mr Gillies said it would also provide more tax for the Government, effectively reducing the cost of the CCS scheme to the taxpayer.
The company, which is British-based, will join with National Grid in looking at the most suitable sites for pumping the carbon dioxide in the next year or so.
A final decision will be made at some point in 2013, depending on funding arrangements.
It is expected it would take three years to build.
Previously it has been estimated the power station scheme could create around 1,500 jobs in construction, and it would employ around 200 people once running.
National Grid’s network operations director, Chris Train, believes the Don Valley Power Project has a vital role to play in the early development of a cluster of CCS power stations in Yorkshire.
Powerfuel went into administration after it failed to raise cash needed to take the project forward.