Gas firm’s stake in power station

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GAS giant BOC has taken a 15 per cent stake in a £5bn project to build a clean coal-fired power station in Doncaster which will pump 90 per cent of waste gases two miles under the seabed 200 miles offshore.

BOC will supply carbon capture technology for the Don Valley Power Project being developed by 2Co Energy which is set to create 2,800 construction jobs and 500 when it is in operation.

The move comes after tech giant Samsung agreed to take a 15 per cent stake in March.

The project will see the construction of a new power station at Hatfield fed by coal from the nearby colliery. It aims to provide power for 1m homes and capture 90 per cent of emissions as carbon dioxide which will be pumped to North Sea oil fields. Once there, it will be used to flush out hard-to-reach oil before being permanently stored two miles under the seabed.

Mike Huggon, managing director of BOC said: “Moving to full commercial-scale carbon capture will be vital to the UK to meet carbon reduction targets. BOC is delighted to take a significant stake in the project.”

UK firm 2Co Energy was awarded planning permission for the project in 2009, it hopes to start construction in 2013 and, if bids for further UK and EU funding are successful, be in operation by 2016.

The design of the power station includes a coal gasification plant which uses hydrogen-rich gas for power generation. 2Co Energy says the captured carbon dioxide will be put to profitable use in the North Sea to recover billions of barrels of hard-to-reach oil, before being stored offshore in depleted oil fields.

It hopes the Hatfield project will spark a cluster of carbon capture plants at Yorkshire and Humber power stations which will then use its pipeline. The region is the heartland of the UK’s coal-fired power plants and contributes about 18 per cent of the UK’s annual CO2 emissions, the firm claims.

Lewis Gillies, chief executive of 2Co Energy Limited, said: “The regional infrastructure created by the project will help the UK lead a clean industrial revolution that keeps the lights on and boosts jobs, green growth and innovation.”