Policy

The UK Government today published details of its plans for developing clean coal, which include carbon capture and storage (CCS) for all new power stations.

Coal currently accounts for 37% of the UK’s electricity capacity. Clean coal, according to independent research by AEA Group, which is also published today, could bring £2-4 billion a year into the UK economy by 2030 and mean 30,000-60,000 new jobs.

The Government’s consultation document proposes that new coal-fired power stations could only be constructed in the UK if they demonstrate CCS on at least 300 MW of capacity. These demonstration projects would also have to store 20 million tonnes of CO₂ for 10-15 years.

The document recognises that Government intervention is vital to progress in CCS, and will continue its competition for a post-combustion demonstration project. The Government is also proposing a financial incentive funded by electricity suppliers to support a further three CCS demonstrations, including pre-combustion technology.

Once CCS is a ‘proven’ technology, which the Government estimates will be reached around 2020, it will become mandatory for all power stations. Existing facilities will have five years from this time to retrofit CCS technology.

But if the development of CCS takes longer than expected, the Government is proposes the introduction of extra measures to reduce emissions from coal-fired power stations such as an annual cap, a limit on running hours or the introduction of an emissions performance standard.

“The conditions we’re proposing for new coal are the most environmentally ambitious of any country in the world, requiring the demonstration of CCS on a substantial proportion of any new power station and the 100% retrofit of CCS when it’s proven,” said Energy and Climate Change Secretary Ed Miliband, who first outlined the plans in April.

“At the same time, by providing funding for demonstrations, we can maintain coal as part of our energy mix, supporting diversity and therefore security of supply,” he added.

In a letter to The Guardian newspaper, a group of green and environmental organisations including Greenpeace, Friends of the Earth and WWF UK is calling on the Government to “provide international leadership” on coal power stations emissions ahead of the Copenhagen meeting this December.

“A policy which completely rules out emissions from new coal and sets a deadline for all existing fossil fuel stations to meet similar standards is essential both for climate security and business certainty,” says the letter.

The Government’s consultation document is open for comment until 9 September 2009.

For further information:
www.decc.gov.uk/en/content/cms/consultations/clean_coal/clean_coal.aspx
www.decc.gov.uk/en/content/cms/what_we_do/uk_supply/energy_mix/ccs/ccs.aspx
www.aeat.co.uk/cms/
www.greenpeace.org.uk/
www.foe.co.uk/
www.wwf.org.uk/

Related stories:
UK says no to coal power stations without carbon capture and storage (27-Apr)
Time is right for UK decision on CCS development, says E.ON (18-Mar)
UK takes next step towards commercial CCS (2-Jul 2008)
CCS could be economically self-sustaining by 2030 (24-Sept 2008)
CCS offers false hope say environmental groups (8-May 2008)