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Centrica Planning UK's First Clean Coal Power Station

Posted on: Thursday, 9 November 2006, 15:01 CST

Centrica, which operates the UK's largest fleet of gas-fired power stations, has acquired an option to participate in what would be the UK's first complete clean coal power generation project for a total of GBP7.2 million.

The agreement, signed with Progressive Energy Limited, provides Centrica with an 85% interest in development company Coastal Energy Limited, which will seek full consents for the right to construct a new clean coal power station in Teesside, UK.

If it goes ahead, the project would be the first to combine integrated gasification combined cycle (IGCC) and carbon capture and storage (CCS) capabilities, and would lead to the development of a 'clean coal' power station to supply electricity for British Gas customers, together with a pipeline and storage project to capture the CO2 emissions.

IGCC is an emerging technology that offers potentially lower running costs than gas-fired generation, with comparable emissions and performance outputs. IGCC uses the latest combined cycle technology and is environmentally superior to other types of solid fuel generation, enabling capture of over 80% of CO2 emissions. IGCC plants can also run on natural gas or operate 'bi-fuel.'

Centrica will obtain a fixed price option to acquire the remaining shares in Coastal Energy at the end of the two-year development phase. Exercising the option would enable Centrica to negotiate an engineering, procurement and construction contract, ready for full construction.

Under the same agreement, Centrica will also acquire a 55% interest in Coots Limited, a CO2 pipeline company. Subject to further financing, this would provide a full carbon capture and storage solution to dispose of the power station's emissions in the North Sea through agreements with existing producers.

Source: Datamonitor

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