Green light for first carbon capture and storage project

London - The UK government has given Powerfuel plc the go ahead to to build a 900 megawatt (MW) integrated coal gasification gas-fired power station on the site of Hatfield Colliery near Doncaster, Yorkshire. Powerfuel plans to construct the world's first large scale integrated gasification combined cycle (IGCC), near zero emissions power station with carbon capture capability in two phases.

The first phase of the project involves the construction of the 800MW CCGT facility that has been designed and optimised for 'syngas' conversion and operation. Powerfuel plans to convert the CCGT plant into a 900 MW IGCC near zero emissions power station fuelled by Powerfuel's extensive coal resources at its Hatfield colliery in Phase II of the project. During Phase I, the CCGT power station will be powered and supplied by way of a natural gas pipeline connection to the National Transmission System (NTS) 11KM from the Hatfield site.

Richard Budge, CEO of Powerfuel plc commented: "This consent allows Powerfuel to implement our plans for the large-scale production of low carbon electricity in the North of England from a secure source based here in the UK. I am confident we will successfully convert the CCGT power station into an even more environmentally friendly IGCC station which will be constructed by 2014."

Construction work of the CCGT power station, which will use established and proven gas turbines supplied by General Electric, is expected to begin in June 2009 and complete at the beginning of 2012, at which time the already agreed grid connection for the export of electricity, will be available.

Jacobs Engineering Group has been contracted to provide the front end engineering and design (FEED) for the project. A significant majority of the construction costs for Phase I will be under fixed price agreements with an experienced Engineering, Procurement and Construction (EPC) provider.

The gasification technology which will be utilised in Phase II of the project is licensed from Shell and will capture approximately 90% of potential carbon emmissions from coal which can then be removed for sequestration. The resulting synthetic gas or syngas (which is basically pure hydrogen), when burned in the gas turbines, will primarily emit water vapour. When fully operational, the plant will save around 5 million tonnes of carbon from being emitted.

Mike O'Brien - minister for energy and climate change commented: "It is essential to replace older polluting power stations that are reaching the end of their lives with new stations that operate more efficiently. I welcome this investment from Powerfuel which will see enough energy generated for about one million homes."