E.ON moves forward with Kingsnorth CCS plan

Following hot on the heels of the launch of the UK's new clean coal consultation, energy giant E.ON has stepped up pressure on the government to approve its plans for a new coal-fired power plant at Kingsnorth in Kent featuring carbon capture and storage (CCS) technology.

Just hours after the government released proposals for four new CCS demonstration plants and the regulatory and incentive framework that will govern them, E.ON announced it had signed an agreement with two engineering firms, which could see them develop CCS technology at the Kingsnorth site.

The company said it had selected MHI and Foster Wheeler Energy Limited to lead the project team, which will work on fitting CCS systems capable of capturing 90 per cent of carbon emissions from the proposed plant.

"The government has shown clear support for the development of cleaner coal with carbon capture and storage, so we are keen to push forward with as much of the engineering work as possible to ensure the capture plant is designed to completely integrate with the proposed new units, in line with the consultation," said Dr Paul Golby, E.ON chief executive.

Kingsnorth is one of four sites competing for £1bn in government funding to develop a CCS demonstration plant.

E.ON, which is awaiting a government decision on its planning application for the new coal-fire plant, has said the new plant would be "CCS ready", but has also suggested that technology would only be built into the plant if the government provides financial support.

In a thinly veiled hint to the government to select Kingsnorth as the site for its first demonstration plant, Golby said: “We have already made a commitment to fit capture technology to the proposed new units at Kingsnorth, dependent upon the outcome of the consultation, but that of course also relies on us being granted approval to go ahead with the project."

The company welcomed the new consultation, but said that it would be seeking greater clarity from the government on how future CCS systems and associated infrastructure will be funded, and how existing coal plants will be affected by the new legislation.

“We need to see a clear framework that will enable the technology to develop both at demonstration scale and at a commercial level," said Golby. "We simply cannot wait for such critical investments to be driven by carbon price alone."