One of the UK's most developed carbon capture and storage (CCS) projects was resurrected after it secured necessary funding from the new found buyer for its developer Powerfuel Power.
According to Reuters, the Hatfield CCS project, now renamed Don Valley Power Project, is one of two advanced projects in Britain to capture carbon emissions from thermal power plants and to store them underground.
2Co Energy, a company specializing in CCS, announced its acquisiton of Powerfuel Power on 9 May, which included funding for the Don Valley project necessary to secure a EUR180m ($251.5m) grant from the European Commission, received in December 2009.
The project has been idle for months as Powerfuel Power was unable to make the required pre-financing payment. The parent company, Powerfuel plc, which also owns the Hatfield coal Colliery, filed for bankruptcy in December last year.
"Given the political commitment to CCS in the UK and the EU we are extremely pleased to be able to step into this project," said Lewis Gillies, 2Co Energy's chief executive.
The Don Valley project will provide low-carbon power generation for a 900 MW coal plant in South Yorkshire and is expected to start operating in 2016. The project has entered a bid for further EU money under the New Entrant Reserve (NER) scheme.