31 March 2008 11:37
E.ON enters UK Government's carbon capture and storage competition
E.ON, one of the country's leading power generators, has today announced that it will be one of the entrants to the Government's carbon capture and storage (CCS) competition.
The company's entry into the competition is based on its proposed Kingsnorth coal-fired project in Kent which it plans to build CCS-ready in anticipation of this technology being successfully developed.
E.ON is also proposing that a decision on its Kingsnorth planning application is not made until later in the year, following completion of the Government's consultation into what will be required to make a coal-fired power station CCS-ready.
The company's entry into the CCS competition is supported by partners, including:
- Arup - for project management;
- EPRI - for international technology dissemination.
- Fluor - as carbon capture technology supplier;
- MHI - as carbon capture technology supplier; mf
- Penspen - for pipeline transportation; and
- Tullow Oil - for carbon dioxide storage.
Dr Paul Golby, Chief Executive of E.ON UK, said: "Decarbonising fossil fuels - and especially coal - is one of the key challenges to be overcome if we are to combat climate change and we aim to be right at the centre of the debate. That is why we have consistently supported the Government's competition and that is why we have entered Kingsnorth.
"By making it clear we will use our proposed Kingsnorth site to develop CCS technology, we are addressing one of the fundamental issues in the whole debate: how can we demonstrate that carbon capture works on a commercial scale unless we first build a station which is CCS-ready and then fit the technology to that station? Moreover, how can we expect other nations such as China or India to adopt carbon capture technology unless we can demonstrate that it can be retrofitted?
"That is also why we are also proposing to Government that the Kingsnorth planning decision is made following their consultation process, when we will all know exactly what is required by the Government for a station to be deemed CCS-ready. Once the Government's consultation process is complete and its results published, we can move forward accordingly."
E.ON is reducing its reliance on coal and oil by over 2.6GW between now and 2015. This involves shutting 2.9GW of coal power station capacity split between the existing Kingsnorth and Ironbridge power stations, closing the 1.3GW Grain oil-fired power station by the end of 2015 and building two new, more efficient CCS-ready 800MW coal units at Kingsnorth.
E.ON is committed to reducing the carbon intensity of its emissions across Europe by 50% by 2030. This builds on the existing reduction in carbon intensity of 20% since 1990.
To achieve its goal, E.ON is changing energy for the better and investing for a low-carbon future. Its plans in the UK include:
- £325m on building the Robin Rigg offshore wind farm in the Solway Firth;
- £700m on building the Humber Gateway offshore wind farm;
- Joint venture partner in the London Array, the world's largest offshore wind farm;
- £1bn for gas-fired power stations at the Isle of Grain in Kent (which is currently being built) and at Drakelow in Derbyshire; and
- Gas storage facilities at Holford in Cheshire and at Aldbrough in the East Riding of Yorkshire.
Notes to editors:
- E.ON (http://eon-uk.com/) is one of the UK's leading power and gas companies - generating and distributing electricity, and retailing power and gas - and is part of the E.ON group, the world's largest investor-owned power and gas company. We employ around 17,000 people in the UK;
- E.ON is the new name for Powergen. Our retail business is a leading energy supplier in the UK, with around 8 million electricity and gas customer accounts, covering domestic, SME and industrial. E.ON offers central heating and boiler care through its Home Energy Services business.
- Arup is a global firm of designers, engineers and business consultants providing a diverse range of professional services to our clients around the world. Sustainability underpins our work and the firm is the creative force behind many of the world's most innovative and sustainable buildings, transport and civil engineering projects.
Established in 1946, Arup has nearly 10,000 employees, based in 92 offices in 37 countries, working on up to 10,000 projects at any one time. Our unique structure, with the firm held in trust on behalf of its employees, gives us complete independence. Our profit at 31 March 2007 was £48.5m GPB, before tax and profit share, while our turnover rose 21% on the previous year to reach £572.4m. Arup has been listed in the Sunday Times Top 100 Companies for the last seven years, and we are currently ranked 41st.
Arup's multi-disciplinary approach means that any given project may involve people from any or all of the sectors or regions in which we operate. Our aim is to achieve excellence in all we do by bringing together the best professionals in the world to meet our clients' needs. More information on Arup at http://www.arup.com/
- The Electric Power Research Institute (EPRI) conducts research and development on technology, operations and the environment for the global electric power industry. As an independent, non-profit center, EPRI brings together its members, scientists and engineers, along with experts from academia, industry and other centers of research to:
- collaborate in solving challenges in electricity generation, delivery and use;
- provide technological, policy and economic analyses to drive long-range research and development planning; and
- support multi-discipline research in emerging technologies and issues.
EPRI's members represent more than 90 percent of the electricity generated in the United States, and international participation extends to 40 countries. EPRI has major offices and laboratories in Palo Alto, Calif.; Charlotte, N.C.; Knoxville, Tenn., and Lenox, Mass.
- Fluor. Fluor Corporation is one of the world's largest, publicly owned engineering, procurement, construction, project management and maintenance services companies. The company has built its reputation over the past century by successfully executing some of the largest, most challenging projects in energy industry. Fluor conducts its business in a way that meets the needs of our clients and stakeholders today whilst also protecting, sustaining and enhancing the human and natural resources needed tomorrow. Fluor has a workforce of more than 45,000 employees and maintains a network of offices in more than 25 countries across six continents.
- "Fluor is pleased to be supporting E.ON in the UK Government's carbon capture and storage competition and we look forward to the opportunity of demonstrating our proprietary technology process on a large scale power station, removing carbon dioxide from flue gas as part of a carbon capture programme", said David Constable, group president of Fluor's Power Group. "Fluor is focussed on improving its environmental signature and performance working with the UK government and other states around the world to reduce greenhouse gas emissions."
For more information, visit http://www.fluor.com/.
- Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 3,068 billion yen in fiscal 2006 (year ended March 31, 2007). MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website (http://www.mhi.co.jp).
- About MHI CO2 Capture Technology. MHI provides an extensive range of environmental and power systems equipment for the power utility sector and, in particular, offers high efficiency flue gas desulphurization which has been widely applied throughout the world. MHI also brings real value to this project, in the field of CO2 capture technology, where the company has deployed a number of commercial CO2 recovery plants and furthermore, MHI has a long history of CO2 capture R&D which includes the successful demonstration testing of a CO2 capture pilot plant at a coal fired power station in Japan. For more details see the MHI CO2 capture website; www.mhi.co.jp/en/
- Penspen (http://www.penspen.com/): Penspen is a leading independent group of companies providing Studies, Engineering, Operations, Integrity and Maintenance to the Oil and Gas Industry for Pipelines, Production, Transportation and Storage Facilities both Onshore and Offshore. Penspen has over 1600 staff working in 15 offices worldwide and has undertaken over 5000 projects in almost every market. In addition to oil and gas, Penspen offers services to projects concerned with carbon capture storage (CCS) and in particular the transportation of CO2 from the point of capture to underground sequestration.
- Tullow Oil plc - http://www.tullowoil.com - is one of the largest independent oil and gas exploration companies in Europe. The Group has over 100 licences in 23 countries, with operations in Africa, Europe, South Asia and South America. Tullow is headquartered in London and employs over 350 people world-wide. Current production is over 75,000 barrels of oil equivalent per day. In 2007 the Group drilled over 100 exploration, appraisal and development wells, which included multi-well campaigns in Ghana and Uganda. In addition to activities to extend production life of their Southern North Sea fields, Tullow is investigating the potential longer-term use of Hewett reservoirs and infrastructure for both natural gas and carbon dioxide storage.
For more information contact:
Jonathan Smith on 024 7618 3676