The Government gave its backing to coal-fired power generation yesterday, in what green campaigning groups interpret as a signal that it is set to approve Britain's first new coal power plant in 20 years.

John Hutton, the Business Secretary, said that coal generation would continue to play a “key role” in Britain's power needs for the foreseeable future.

He told a conference on the future of utilities: “For critics, there's a belief that coal-fired power stations undermine the UK's leadership position on climate change. In fact, the opposite is true.”

Green campaigning groups said that Mr Hutton's remarks indicated that the Government would approve E.ON's £1billion plan to redevelop Kingsnorth power station in Kent and build a new coal generator.

Mr Hutton has already backed the development of new nuclear generation and the expansion of renewable energy. He accused environmental critics of coal of indulging in gesture politics.

He said: “Our leadership role is best promoted by the actions we take on capping emissions, carbon pricing and supporting the development of new carbon capture and storage technology. Not by gesture politics.”

Mr Hutton said that fossil fuels remain important because they can respond quickly to peaks in demand, unlike nuclear, and operate in all weather, unlike wind or solar power.

However, Leila Dean, the Kingsnorth campaigner for the World Development Movement, said: “Hutton has the audacity to accuse green groups of gesture politics, but it seems that today he is hinting that he will give a quick consent for Kingsnorth.

“Hutton's vision of climate leadership is to build polluting power stations and cross his fingers and hope for the best that unproven carbon- capture technology works.”

Medway council has said that it has no objection to E.ON's plan. The final decision rests with Mr Hutton.

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