Hull energy project wins in Government power contract auction

Ed Davey

Ed Davey

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A PIONEERING energy plant in Hull has emerged as one of the winners of Government electricity contracts worth £315 million a year.

Energy Works, which will turn waste into gas that will be burned to create electricity, was one of 27 projects to secure one of the Government’s ‘contracts for difference’ (CfD).

The contracts are the Government’s way of supporting new energy technology by guaranteeing companies a price for the power they generate.

Construction of the Energy Works plant is due to begin this year and once open will power 43,000 homes.

Project Director Phil Morland said: “We are delighted that our application for a CfD allocation has been awarded to this ground-breaking project as part of a highly competitive process.

“It is recognition of the project’s strong renewable energy credentials, as well as the numerous benefits and value for money it will deliver.”

The Government said the auction process had saved the taxpayer £110 million but solar power companies criticised the decision to give the majority of the money available to onshore and offshore wind farms.

Energy Secretary Ed Davey said: “This world leading auction has delivered contracts for renewables projects right across the UK. These projects could power 1.4 million homes, create thousands of green jobs and give a massive boost to home-grown energy while reducing our reliance on volatile foreign markets.

“The auction has driven down prices and secured the best possible deal for this new clean, green energy.”

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