British renewable energy developer RES has announced that it is stopping work on its £300 million North Blyth biomass power station project at the Port of Blyth in Northumberland, UK.
RES' decision follows the withdrawal of a key project partner in late 2013 due to ongoing uncertainty in UK energy policy. RES says that the government's inconsistent support for dedicated biomass energy over the last two years - as well as increased uncertainty over the UK's energy policy under the government's Electricity Market Reform process - has critically undermined the investment case for the power station.
The decision means the loss of considerable investment into the Blyth estuary and wider Northumberland economy, of 300 construction jobs and 50 long-term operational jobs at the plant, and of a long-term partnership with the Port of Blyth in terms of fuel transport, handling and occupancy.
RES' chief operating officer for the UK Gordon MacDougall stated:
"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.
"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."
Although there is great potential for dedicated biomass to provide significant low carbon, base load power, the technology has been increasingly marginalised by the UK government in a series of policy developments over the last two years, including the introduction of a cap on dedicated biomass under the Renewables Obligation (RO). The cap represents a radical downsizing in government ambition for the technology from a target of 4000 MW in 2011 to a cap of 400 MW in 2013, long after the industry had invested significant sums in developing projects on the back of DECC ambitions.
Gordon MacDougall concluded: "... as the UK's energy policy currently stands, we cannot make an investment case to take this project forward. "This is a reminder to government that, without a consistent approach to energy policy, investors and developers will be deterred from delivering the billions of pounds needed to ensure the nation's energy infrastructure is able to keep the lights on and secure cost effective electricity for British homes and businesses."
Linkedin
