E.ON not to proceed to next stage of Government's carbon capture and storage competition as Kingsnorth cannot meet competition timescales

E.ON has today (WED) announced that it will not proceed to the next stage of the Government's carbon capture and storage (CCS) competition.

The company's Kingsnorth project was one of two schemes shortlisted as part of the Government's competition, with the aim being to build the UK's first commercial CCS scheme. But, with the market still not conducive to building the 1,600MW supercritical power station, it had become clear that Kingsnorth could not meet the project timetable.

Dr Paul Golby, Chief Executive of E.ON UK, said: "Having postponed Kingsnorth last year, it has become clear that the economic conditions are still not right for us to progress the project and so, simply put, we have no power station on which to build a CCS demonstration.

"We therefore took the decision to withdraw from the Government's competition because we cannot proceed within the competition timescales.

"As a Group we still believe that carbon capture and storage is a vital technology in the fight against climate change and will now be concentrating our efforts on our Maasvlakte project in the Netherlands as we believe the lessons from that project can be brought back to the UK for future generation CCS projects.

"We would obviously also wish Scottish Power well as they look to develop their own project at Longannet."

The company is currently undertaking a front end engineering and design study at the Kingsnorth project and aims to complete this to gather valuable information on CCS that could be shared more widely.

The existing Kingsnorth power station is due to close by the end of 2015 at the latest under the EU's Large Combustion Plant Directive.


Notes to editors:

  • A statement by Dr Paul Golby on today's announcement is available on E.ON's YouTube site at http://www.youtube.com/user/talkingenergy
  • Still images of Kingsnorth are available by registering at http://www.newscast.co.uk/;
  • B-roll of Kingsnorth and an animation of the proposed new station are available to download to broadcast quality by registering at http://video360.world-television.com/EON/CategoryView.aspx?SiteId=oEYUJyiCVyU%3d&locale=en-GB.
  • E.ON 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, one of the world's largest investor-owned power and gas companies. We employ more than 15,000 people in the UK and more than 88,000 worldwide;
  • E.ON's retail business is a leading energy supplier in the UK with around 5.3 million electricity and gas customers, covering domestic, SME and industrial. E.ON also offers central heating and boiler care;
  • Our distribution business, branded Central Networks, provides a reliable supply to around 10 million people in central England through 133,000km of underground and overhead cables - enough to go round the Earth more than three times - and via almost 94,000 substations. The company covers an area from the Peak District in the north to parts of Bristol in the south, and from the Welsh Borders to the Lincolnshire Coast;
  • The generation business produces enough electricity to cater for the needs of around eight million homes from a portfolio of world-class gas-, coal- and oil-fired power stations;
  • We're a market leader in UK combined heat and power (CHP) with 12 sites supplying over 500MW of electricity and in excess of 900MW of heat;
  • We're one of the leading green generators in the UK, with 21 wind farms located from Cambridgeshire to Kintyre. We own and operate one of the UK's largest dedicated biomass power stations at Lockerbie;
  • We recently launched our first wave power generator, which is the first in UK waters and which is capable of generating 750kW of renewable energy;
  • Our target is to cut the carbon released by each kW of electricity we generate by 10% between 2005-2012, having already reduced it by 20% since 1990;
  • We have 1,500MW of renewable capacity under development in the UK;
  • In order to help people get ‘energy fit', we have installed over 630,000 cavity wall and loft installation measures since 2005, as well as energy efficient boilers and smart meters;
  • We are investing £50 million in new technologies and approaches over 10 years, through the Energy Technologies Institute;
  • We have Biodiversity Action Plans at many of our sites which align us with the UK target of significantly reducing biodiversity loss;
  • In the last 12 months, we've cut the amount of non-operational waste we send to landfill by 16% and we've reduced the amount of miles we drive for business by 20%;
  • E.ON Group has announced it intends to reduced the carbon intensity of its generation by 50% by 2030 (on 1990 levels);
  • E.ON Group aims to spend €8bn between 2007 and 2012 on renewable generation and climate protection activities;
  • At Maasvlakte, we are working with Electrabel, Gdf Suez and the Rotterdam Climate Initiative to conduct a joint CCS feasibility study. The plan is for a full-scale 250MW CCS unit to be fitted on the new power station currently being built.

For more information contact:

Jonathan Smith on 024 7618 3676 or jonathan.smith@eon-uk.com

Rebecca Mara on 024 7618 3679 or rebecca.mara@eon-uk.com