10 Dec 2010 10:12:04
CCS parent company Powerfuel enters administration
The parent company behind one of the UK's first carbon capture and storage (CCS) demonstration projects, Powerfuel Plc, has entered administration.
KPMG has been called in as the administrator of the power group, although the company stresses Powerfuel Mining and Powerfuel Power, the CCS arm, have not gone into administration.
The company is behind the development of the 900MW CCS project at the Hatfield colliery in Doncaster and it is hoped the business will be sold to someone with the necessary funds to continue with the project.
Richard Fleming, joint administrator from KPMG, commented: "Developing low carbon energy generation requires a large amount of capital upfront and the CCS development falls £635m short of the investment needed to progress the project beyond the preliminary stage. It needs moving on to a new owner with deeper pockets."
Powerfuel purchased the Hatfield colliery in 2006 and currently employs 380 people at the site, who it assures will not be affected by the administration proceedings.
It was granted consent to develop the CCS demonstration project, which should capture 90 percent of emissions, at the site in 2009.