BRITAIN could cut the cost of reducing greenhouse gases by £3 billion if it fitted clean-coal technology to its ageing power stations, rather than building wind farms.

Some 2,000 wind turbines will be put up in Britain over the next six years at a total cost of approximately £9 billion as power companies seek to comply with a government demand to increase supplies of renewable energy.

However, Mitsui Babcock, the British-based power station manufacturer, is urging the Government to invest in clean-coal technology, which it argues could be fitted to the UK’s 16 coal-fired power stations for only £6 billion.

Iain Miller, chief operating officer of Mitsui Babcock, said: “Coal will continue to be a critical source of power in the medium term but has been largely ignored since the introduction of the energy White Paper last year.

“The UK Government must take the lead on delivering a balanced energy policy which recognises the importance of coal to achieving security of energy supply and of clean-coal technologies in reducing carbon emissions to meet current targets.”

Coal provides about 32 per cent of Britain’s electricity, but that proportion could halve after 2011, when new emissions legislation comes in. To fill the gap the Government is encouraging billions of pounds of investment in onshore and offshore wind farms by requiring that each power company produce a proportion of its electricity from renewable sources.

However, Britain may be in danger of missing the demanding Kyoto targets and risking future power shortages if it continues to rely on wind energy to replace both ageing coal plants and decommissioned nuclear power stations. At best, the detractors argue, wind turbines produce on average a third of their maximum power capacity.

“The cost of installing clean-coal technology across the coal-fired fleet could be achieved at almost half the cost of achieving equivalent reductions using renewable sources,” Mr Miller said.

Mitsui Babcock wants the Government to introduce a form of incentive, similar to the renewable obligation certificate, for power generators to invest in clean-coal technology.

“Solutions are available now that will allow us to secure our electricity supply and cut emissions but the industry will not commit to carbon-abatement improvements without active leadership from Government,” Mr Miller said.

Green coal technology could cut carbon dioxide emissions by 50 per cent to 60 per cent from current levels, Mitsui Babcock says.

Mitsui says that its technology , applied across the existing fleet of UK coal-fired power stations, would be similar to the impact of erecting 7,000 to 10,000 wind turbines.

According to Mitsui, wind power is six times more expensive than its technology in delivering the same CO2 reduction throughout the life of the power station.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts