Plans for a major biomass power station have been scrapped over ‘inconsistent’ support for the green technology from the Government.
Developers RES had planned to develop a 100MW power plant in North Blyth, Northumberland, providing enough power for 170,000 homes.
But the £300million project, which would have created 350 jobs in the north-east of England, has now been dumped as the electricity market reform process casts doubt on government support for biomass schemes.
“Despite the support the project enjoys locally due to the significant benefits it would bring to the local and regional economy, the North Blyth Biomass Power Station currently faces insurmountable investment barriers due to uncertain Government energy policy,” said RES chief executive Gordon MacDougall.
“It’s bitterly disappointing for RES that we are unable to bring this exciting project forward, and deliver the significant boost it would have represented for the Blyth and Northumberland economy. However, the gradual erosion of support for dedicated biomass leaves us with no other option.”
“This is a reminder to Government that, without a consistent approach to energy policy, investors and developers will be deterred from delivering the billions of pounds needed to ensure the nation’s energy infrastructure is able to keep the lights on and secure cost effective electricity for British homes and businesses.”
Last year one of the partners in the project withdrew over the ongoing uncertainty in UK energy policy.
The site, which would have used up to 900,000 tonnes of woodchips and biomass fuels a year, was cited at the Blyth port and was predicted to cut CO2 emissions by more than 300,000 tonnes a year.
RES had planned to commission the plant by 2015 before today’s announcement. Industry body the Renewable Energy Association said scrapping the project represented a blow for the UK’s climate change objectives.
“The Government used to have a clear policy of supporting the most affordable low carbon technologies, which saw biomass projects attract healthy investment,” said chief executive Dr Nina Skorupska
“However, recent Government actions have eroded investor confidence in the biomass sector. The result is project cancellations totalling hundreds of MWs and millions of pounds of inward investment.
“This row-back on biomass leaves a huge hole in the Government’s plans to keep the lights on with low carbon technology. It is also a missed opportunity for cost-effective emissions savings and thousands of new jobs.”
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