Clean coal plants and biomass to lead boom, Minister pledges

Speaking in Leeds yesterday, Energy and Climate Change Secretary Chris Huhne said the Government will give every support to a proposed wave of “clean coal” projects and biomass power plants which should see hundreds of millions of pounds flooding into the region over the coming years.

The coalition has come under fire from the green energy industry over recent weeks, after cutting subsidies for new biomass power stations and cancelling plans for the UK’s first “clean coal” plant – using pioneering carbon capture and storage technology (CCS) – at Longannet in Scotland.

Mr Huhne insisted both technologies remain hugely important to Britain as it pushes ahead with efforts to slash carbon emissions by the end of the decade.

“Clean coal and gas – taking the carbon out and storing it safely – is going to be a key part of our energy future,” he said.

“It will allow us to go on using coal, which is not just important here but also when you look at places like China.

“And it will allow us to go on using gas. There’s a lot of shale gas under Lancashire which (drilling firm) Quadrilla have just said they have found – now we are going to be able to use that in a sustainable way. So CCS is really key, and I am very excited by what’s going on up here. Yorkshire has got a very important part to play in this.”

The Liberal Democrat Minister moved to allay fears that the vast amounts of public funding required to get CCS schemes off the ground is drying up at the very point it is needed most.

Last week the Yorkshire Post revealed a £4bn black hole has emerged in EU plans to support new CCS schemes across the continent, only weeks before the draft results of its funding competition are announced.

Meanwhile the UK Government has still not announced the formal timetable for its own CCS funding competition, with £1bn available to help firms with start-up costs.

Mr Huhne said: “Our funding pot is very, very clear. We have been absolutely clear that £1bn is set aside for CCS and will support CCS projects.

“Remember there are different ways we can offer support. Not just with money up front, which is there with this £1bn for capital costs, and not just through the EU competition, but also through our energy market reforms.”

Describing energy production as being “in the blood” of Yorkshire’s economy, Mr Huhne also gave his backing to biomass projects on the day a new 50Mw wood-burning plant was announced in East Yorkshire.

But he stressed projects must not burn crops which have been grown in place of existing farmland, backing instead the use of sustainably-managed woodland to power the new wave of power stations.

The Minister added that improving energy efficiency measures in people’s homes is just as important as increasing renewable energy, highlighting the importance of the Government’s forthcoming “Green Deal” initiative.

The programme, due to be launched later this year, promises to fit millions of homes with simple efficiency measures such as loft lagging and cavity wall insulation to slash fuel bills and carbon emissions at the same time.

Mr Huhne said even older buildings will benefit from the plan.

“Even our pre-war buildings that do not have cavities in the walls to fill with insulating foam, we can insulate by cladding the exterior,” he said. “It’s a bit like putting the whole building in a duvet.”