Home Forum Sponsors Careers Contact Us
Login  |  Register
Download Latest Newsletter (Issue 179)
Europe North America Asia Rest of the World Global News & Policies
2Co Energy Acquires Powerfuel and Hatfield Project

Monday, May 9, 2011

UK based 2Co Energy has acquired Powerfuel Power Ltd and its Carbon Capture and Storage Hatfield project.
2Co Energy was selected as the preferred bidder for Powerfuel Power Ltd in March this year after its parent company, Powerfuel plc, went into administration in December 2010.
The company says it is also putting in place a financial guarantee that will enable a €180 million grant from the European Commission to be drawn down.
Based in South Yorkshire, the project, which will now be renamed the Don Valley Power Project, is set to generate 900MW of low-carbon power from 2015-2016 and to capture and store up to 5 million tonnes per annum of CO2 under the North Sea.
The project, in partnership with National Grid, was awarded a €180 million grant in December 2009 as part of the EU's European Energy Programme for Recovery which is aimed at accelerating the development of CCS technology. This has already enabled National Grid to begin work on transportation and storage options capable of serving the project as well as the wider needs of a future cluster of Yorkshire carbon capture projects.
2Co Energy is today providing the financial guarantee the European Commission requires for a €45 million pre-financing payment to be made, enabling the grant money to be used to further progress the project.
2Co Energy believes it now provides both the technical and financial robustness the project needs to be successful in its application for further funding under the EU's New Entrant Reserve (NER) 300 scheme.
"Given the political commitment to CCS in the UK and the EU we are extremely pleased to be able to step into this project," said Lewis Gillies, Chief Executive, 2Co Energy. "Using coal so that it has a low-carbon footprint meets energy security needs as well as CO2 emissions reduction targets. Equally importantly, the potential for using CO2 for Enhanced Oil Recovery could help meet UK fiscal needs as it would bring access to taxation revenue from extra North Sea oil production and significantly reduce the overall cost of CCS to the UK."
Selection of the best CO2 storage site is vital for any proposed CCS project so 2Co Energy and National Grid will pursue two options over the next year or so. 2Co Energy will take forward the technical and economic evaluation of potential CO2 storage and EOR projects in the Central North Sea. National Grid will focus on saline formations in the Southern North Sea that could be made available for 2Co Energy's project or others in a future Yorkshire cluster of projects.
Chris Train, National Grid's network operations director, said the Don Valley Power Project has "a vital role to play in the early development of a CCS cluster on Humberside, which could help make a major contribution to the UK's move to a low carbon economy. By allowing flexible coal and gas-fired power stations to stay in our future generation mix, CCS also offers a major boost to maintaining the security of our energy supplies."
"The UK is uniquely well positioned in Europe both in terms of the potential suitability of North Sea geology for storing CO2 and also its ability to use the CO2 to enhance its security of energy supply with incremental oil production. The political will to make this project happen is considerable," said 2Co Energy's Lewis Gillies. (Carbon Capture Journal)
Your Name:
Verification Code:  
  The comments submitted do not represent CaptureReady's standpoint, is not responsible for any of those, and entitled to deal with them.
Search News
Sponsors | Careers | Contact Us | Privacy | Terms of Use
© 2008~2010 LINKSCHINA. All rights reserved       ICP:08005527