100MW biomass project scrapped
6 Mar 2014
The developer of a 100MW biomass power plant in Northumberland has decided to abandon the project due to uncertainty over subsidy support for the scheme.
Renewable energy firm RES today announced it was ceasing work on its Port of Blyth project, less than eight months after it was approved by environment secretary Ed Davey.
RES blamed “ongoing uncertainty” in UK energy policy for the withdrawal of a key, and as yet unnamed, development partner late last year, which has rendered the project no longer viable to develop.
The gradual erosion of support for dedicated biomass leaves us with no other option
RES UK COO Gordon MacDougall
“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 operating officer for the UK 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.”
Port of Blyth was one of 1GW-worth of dedicated biomass projects under development in England that had been forced to compete for financial support under the Renewable Obligation (RO) scheme after the government introduced a 400MW cap.
Responding to today’s announcement by RES, a spokesman for the Department of Energy and Climate Change said: ”We are disappointed that RES have decided not to take this project forward, however this is a commercial decision.
”The UK is one of the world’s most attractive places to invest in renewable energy, ranking second in the world for biomass.”
