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The UK power industry has told the Government that the development of “clean coal” power stations will not take place without heavy subsidy and higher electricity prices.
The first “clean coal” power plants, which could dramatically cut carbon emissions, will need grants of up to £300 million.
Centrica, the UK’s largest energy supplier, said that Britain and other European countries must penalise polluters by doubling the cost of carbon permits under the European Emission Trading Scheme (ETS), which would raise the cost of electricity.
The warning over the price of green energy came as the Government delayed publication of its Energy White Paper by a week, to June 23. RWE npower will today ask the Government for clarity over plans to support clean coal technology as it reveals a blueprint to build Britain’s biggest coal-fired power station for more than 30 years.
The £2 billion coal project at Blyth, Northumberland, would generate up to 2,400 megawatts of electricity — enough to supply 3.5 million homes.
According to RWE, the Blyth plant would produce 22 per cent less CO2 than a conventional power station by using a “supercritical” burning process.
It will also be “carbon-capture ready”, capable of transporting and storing CO2 in spent North Sea gasfields, when the technology is proven.
Centrica, which is promoting a £1 billion “clean coal” scheme on Teesside, using technology that extracts synthetic gas from coal, eliminating most of the CO2, said such projects would not be viable without a big increase in financial incentives.
Jake Ulrich, the managing director of Centrica Energy, said that the price of ETS carbon permits would need to double for power generators to justify switching from conventional coal or natural gas-fired plant.
“To make these projects economical you need a carbon price of at least ¤40 per tonne,” he said. ETS carbon trading was intended to create an incentive for polluters to reduce emissions by enabling “cleaner” generators to sell permits to “dirty” generators. The scheme has failed because permits were allocated free and too many were issued. Currently, the ETS carbon price is just ¤Kevin Akehurst, head of generation at RWE npower, said the industry needed to see the detail of the Government’s support, adding: “It’s difficult to make big investment decisions on cleaner coal plant without clarity over the long-term future of European regulation.”
More than a dozen new power stations are at the planning stage, but the industry expects that financial support will go to only two or three carbon capture projects, which would need grants of some £300 million each to get off the ground.
The facts
–– There is no physical difference between clean or ‘dirty’ coal
–– “Clean coal” refers to technologies designed to cut emissions
–– Coal can be “cleaned” of unwanted minerals and impurities
–– Technologies include capturing CO2 from the burning coal or extracting
synthetic gas from coal
–– The CO2 can then be stored in spent North Sea oil and gas fields
–– Carbon capture could reduce CO2 emissions by 90 per cent per plant
–– There is no carbon capture plant in operation in the UK
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A breakthrough in clean coal has been discovered in Canada, below are links to two articles that appeared in the Globe and Mail followed by a short excerpts from each. Please visit these links and read them in their entirety.
http://www.canadaeast.com/ce2/docroot/article.php?articleID=142439 "'This is huge' Judging by all the analysis and tests so far, a TIPS coal-fired electrical generation plant could fit comfortably into urban or suburban streetscapes. It sounds too good to be true. But Bruce Clements, a classically understated Canadian scientist, says it's for real. "This is huge," he says. "This is a step change."
http://www.theglobeandmail.com/servlet/story/RTGAM.20070516.wreynolds16/BNStory/robColu federal research scientist Bruce Clements described it as potentially the most competitive source of electricity - in cents per kilowatt-hour - in the world. A TIPS-based demo plant, he alculated, could produce zero-pollution, carbon-capture electricity for 8 cents a kw-h
James Tate, Cahrlotte, MI. USA
We are not going to solve climate change without clean coal and without China/India/the US. A technical lead on clean coal technology can be a fantastic opportunity for the UK industry but a decision on the deployment of first clean coal plants has to happen quickly.
Matthew Lucquiaud, London, UK
£300 million is a lot of money to put into subsidies. The UK just went through 30 years of "difficulties" to wean off the grant culture. At this sum, what other forms of energy could be developed Wind, Traditional Tidal, Tidal Turbines, Hydro, WTE, Ethanol, Methanol, Hydrogen, Nuclear? Lots of options for this government money. This subsidy should be considered very carefully and publically.
Danielrober, London,
This is madness; we keep talking about expensive technologies to clean coal and to capture CO2, when the technology to clean the post combustion gases that contain the pollutants and greenhouse gases exists today at about a third of the cost of what most power stations are currently using. This technology will eliminate the bulk of the pollutants from flue gases, including SOX, NOx, particulates, VOCs and heavy metals such as mercury. The technology also converts up to 80% of the CO2 into stable bicarbonates (such as baking soda), thus eliminating the need to capture the CO2 as a liquid gas and then having to store it underground so that it does not revert back to a gas in the atmosphere.
Martin Brau, WOW Energies, Houston, Texas, USA
It seems these days that private industry can not survive with out tax payers money. If they want our money it should on the basis of a loan which is paid back in a resonable time period. It makes me mad that some of these grants will go to the profits of a foriegn company. I do agree that the cost of the R.O.C are too cheap and hopefully if they were dearer then other renewables such as marine energy would be developed
martin, cambridge,
I think the UK desprately needs to look into renewable energy options. As doing a geography degree at Reading University for my course i was asked to read Jeremy Leggett's, Half gone, oil, gas, hot air and the global energy crisis. I believe that more people should read this book. Although being bias which you have to look past it wakes you up to the looming prospect that we are potentially heading for diaster. I think people should seriously read this book and make up there own minds on the situation we are heading into.
Sarah Harris, Reading,
Since currently 50% of electricity is lost in its distribution (which makes Thames Water's water losses look small in comparison) would it not be sensible to pursue a policy of building more smaller power stations located closer to centres of consumption rather than ever bigger power stations sited miles away from where the electricity is needed ?
Richard Temple, Sundridge, Kent
Who are 'the UK Power industry' stated in the article? I'd like to see a follow-up piece that speaks to them about the relative cost of £300 million worth of inhouse investment compared to their combined profits for last year. I expect it would be a drop in the (polluted) ocean.
Steve, Winchester,
In answer to some of the comments made, "clean coal" needs subsidising because the capital investment is so much higher than for an equivalent gas station. In effect what we are being asked to pay for is the security of supply coal buys us against the volatility of gas security.
Jim, Oxford,
So these large corporations, making billions of pounds/euros profit every year, are expecting the UK tax-payer to foot the bill so that they can do their little bit for the environment? This comes just a few days after the CBI were expecting the government to cut public spending to pay for business tax cuts! Yes that seems fair....!
Rod Munch, Northampton, UK
So these large corporations, making billions of pounds/euros profit every year, are expecting the UK tax-payer to foot the bill so that they can do their little bit for the environment? This comes just a few days after the CBI were expecting the government to cut public spending to pay for business tax cuts! Yes that seems fair....!
Rod Munch, Northampton, UK
"Clean coal" is only clean where it's used. The energy for the cleaning process requires 40ton of coal from every 100ton delivered. The dirty byproducts are left in the dveloping world, where less stringent regulations control pollutants.
Does it solve the problem or just commute the effects?
John , Nottingham, Swift
I think it would be a big mistake for the government to either try to micro manage the private generator emissions or provide free subsidy because it will be outwitted by greed either way. We need a simple fossil carbon tax, a big one.
Malcolm, Wirral, UK
i think it sounds like a great idea to be honest, however they are going to have to come up with solutions for car emissions, cigarette fume etc. to also protect the planet from global warming
matthew willis, milton keynes, england
Why subsidies ? A level-playing-field can also be achieved with good regulations that cost no taxpayers money and allocate the costs with (future) energy users.
Paul Metz , Velp, Netherlands