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Energy group names advisers for huge ‘clean coal’ project
THE company behind a scheme to build a multi-billion pound ‘clean coal’ project has appointed advisers for the development.
2Co Energy has named BNP Paribas as the bank to advise and secure debt financing required for the planned 650MW Don Valley Power Project, while Linklaters and Nabarro will act as legal advisers.
The 2Co Energy project, at Stainforth close to Hatfield Colliery near Doncaster, is currently competing for EU funding to build one of Europe’s first carbon capture and storage (CCS) projects in the UK.
The project will cost approximately £3bn onshore and £1bn offshore.
Dean Hislop, chief financial officer of 2Co Energy, said: “BNP Paribas will help us structure the project finance and debt for the Don Valley Power Project and ensure that it is a credible and ‘bankable’ project.”
BNP Paribas will conduct an initial review of the project’s commercial contracts and business model as well as providing high-level support on regulatory, commercial and technical discussions to facilitate the development of an overall financing and debt structure for the project.
The Don Valley Power Plant has already attracted an initial £180m in EU funding. Its business model centres on the vast CO2 storage and additional oil recovery potential under the North Sea.
The project will provide low carbon electricity to the equivalent of around a million UK homes, capturing 90 per cent of its entire CO2 output – up to five million tonnes a year. Planning permission for the power plant has already been granted making it well placed to start construction in 2013, with final commissioning in 2016.
Adrian Lumley-Smith, commercial director of 2Co Energy, said: “The project is attracting major international interest and in Linklaters and Nabarro we have found legal advisers with the world-class expertise we need to secure its future development.”
However, last week it was revealed that a collapse in the price of carbon permits means only a fraction of the expected money will be made available by the EU for CCS schemes this year. The European Investment Bank will reveal its recommendations as to which schemes should be funded next month. A final decision is expected later in the year.
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Wednesday 23 May 2012
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Nikkuk
Monday, January 23, 2012 at 03:59 PMThis 'clean coal', I would suggest, is a bit of a misnomer. 2Co Energy’s business model is to pump waste CO2 into old oil wells in order extract more dirty oil that could not otherwise be recovered economically. What will happen is that 1 tonne of coal will produce about 3.5tonnes of CO2. This CO2, when pumped into the oil well as liquid under pressure, will displace about 4 to 5 cubic metres of oil, say 4.5 cubic metres nominal. When these 4.5 cubic metres of oil are burnt they will produce about 14 tons of CO2, about 4 times more than the original coal produced. This is does not seem to be carbon abatement to me, its more a way of enabling us to produce more oil, probably with government subsidies (public money) into the bargain!
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