Eggborough Power Station fails to gain biomass subsidy; expected to close in 2015
Eggborough Power Station could cease its supply to the National Grid in 2015 after it emerged it had failed in a bid to secure funding for conversion to biomass technology.
Selby
The 2,000 MegaWatt coal-fired plant had bid for Government cash to fund the conversion which would have allowed it to burn wood pellets instead of coal. The green energy project would then have enabled the station to avoid costly levies on carbon emissions due to come in over the next few years.
But Eggborough has failed to appear on a list of projects that would be afforded special fast-tracked access to funding. This means the plant will not now be eligible for subsidies until 2015.
Following the announcement, parent company Eggborough Power Ltd confirmed its intent to cease its supply to the UK National Grid from 2015. Production at one of the plant’s generators possibly ending as early as September 2014, unless a new solution could be found.
Eggborough is a major employer in the Selby area providing jobs for approximately 800 workers for whom the announcment will come as a major blow.
Eggborough Power Chief Executive, Neil O’Hara, said, “Unless a viable solution is found with Government, the most likely outcome now is that Eggborough will no longer be supplying electricity to the grid beyond 2015.
“Impending EU regulation and the escalating impact of the carbon price floor mean this is unfortunately the rational economic conclusion based on the information we have available at this time.”
The plant currently has capacity to supply around four per cent of the UK's energy needs – enough electricity to power approximately 2,000,000 homes.