Hutton reiterates controversial support for coal and nuclear

Business secretary John Hutton has today risked further angering environmental groups by again stressing his support for both nuclear energy and coal as key components in the UK's energy mix.

In his speech to the Labour Conference in Manchester, Hutton said both sources of power were essential to help secure the UK's energy supply and as such would play a key role in the UK's energy strategy alongside the promised ten-fold increase in renewable energy capacity.

He reiterated his recent support for nuclear power, arguing that it was "low carbon, reliable, secure", but also signalled his support for new coal-fired power stations, such as the proposed plant at Kingsnorth in Kent, which is awaiting government approval.

"Because energy security is a first thought, not an afterthought, I will not turn my back on another critical source of energy security for the UK: coal," he said.

Hutton also criticised Conservative plans to introduce emission standards that would effectively ban all new coal-fired power plants built without carbon-capture capabilities.

"I understand that people feel passionate about this issue," he said. " Others, like the Tories, see an opportunity for pandering. But coal is critically important for the UK. Flexible. Available. Reducing our reliance on imported gas."

Instead of banning coal-fired power plants that do not feature carbon capture systems, the government hopes that the price put on carbon emissions through Europe's emission trading scheme will make it cost-effective for energy firms to install the technology.

It is also planning to invest £1bn in a commercial-scale pilot project that will see carbon capture and storage technology fitted to a UK plant.

The speech attracted criticism from Friends of the Earth, which accused Hutton of failing to grasp both the scale of the threat from climate change and the potential for renewable energy in the UK.

"Peddling a new generation of coal-fired power stations as essential for Britain – before we even know if carbon capture and storage is going to work - is dangerous and misleading," said Friends of the Earth Energy campaigner, Robin Webster. "Renewable power and energy efficiency must be at the centre of Britain’s energy plans – not consigned to the margins."

Meanwhile, Chancellor Alistair Darling today confirmed that there would be no windfall tax on energy companies, arguing that the government "got rather more out of the energy companies" through their increase in funding for home energy efficiency improvements than it would have done through a windfall tax".

Earlier this month, the government announced a deal with the energy companies that will see them contribute an extra £910m to subsidised home insulation programmes. The move attracted fierce criticism from Labour backbenchers and trade union groups who had been calling for a windfall tax to pay for increased winter fuel payments.