Ministers back clean coal power station to compete for Euro grants

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MINISTERS have given a further boost to plans for a clean coal power station at Stainforth.

The scheme, now called the Don Valley Power Project, has been included in a list of 12 schemes in the UK which will be forwarded by the Government to compete for European Union money aimed at projects to create low carbon power.

There will be around £3.9 billion available for grants under the New Entrants Reserve Funding.

The announcement comes less than a week after it was announced that 2CO Energy was buying the project after its previous owner, Powerfuel, went into administration last year because of problems raising cash to move the project forward.

Chief executive of 2CO Energy, Lewis Gillies, said: “We warmly welcome the Government’s selection of the IGCC Don Valley Power Project as one to go forward to the EIB and see it as confirmation of our belief that this is one of the most advanced, and technically and commercially robust projects in Europe.

“It is also an indication that the project is seen to be on a sufficiently sound financial footing to be able to be put forward for consideration for this next, essential round of funding.”

The plans would see the carbon dioxide removed and piped into underground storage under the sea bed at the bottom of the North Sea. The plans would also see the gas used to flush out oil which would otherwise not be accessible in depleted oil wells.

National Grid is also involved in the project next to Hatfield Colliery, working with an expert offshore company to develop a potential shared pipeline network and storage site – a ‘CCS cluster’. Its bosses were also pleased by the announcement.

Meanwhile, Doncaster Council’s cabinet member for business and regeneration is delighted the power station plan is back on track.

Coun Jonathan Wood said: “The purchase of the Hatfield Carbon Capture and Storage project by 2Co Energy is tremendous news for Doncaster.

“The deal puts Doncaster at the forefront of innovative energy production and storage technology and drives our energy sector forward.

“This unique project will be a real boost for the economy.”

It has been estimated that it would create around 200 jobs operating the site, with more than a 1,000 in its construction.

Planning permission is already in place.