In April 2009, we outlined proposals for a new regime for new coal-fired power stations. Coal emits more carbon dioxide per unit of electricity produced than all other forms of generation and, with the global use of coal as a fuel for electricity generation expected to increase over the coming decades, there is an urgent need to develop technologies that tackle emissions. Developing clean coal is not just about preventing climate change and securing our future energy supplies. It will also open up opportunities for UK businesses in a major future market expected to be up to £40 billion by 2030 and Carbon Abatement Technologies including CCS could sustain a total of about 30,000-60,000 jobs in the UK by 2030.
The proposals were set out in more detail in “A Framework for the development of clean coal: consultation document” which was published on 17 June 2009 and closed in September 2009 (see below). We received 2348 responses from organisations and individuals and would like to thank all respondents, including those who provided feedback at meeting and workshop events held during the consultation period. The Government Response to the consultation was published on 09 November 2009 and is available below.
In response to the consultation, we are now confirming our policies on the new regulatory and financial framework to drive the transition to clean coal. Any new coal power station will have to comply with the new policy framework. In summary, the policies are:
- No new coal without CCS. A programme of up to four commercial-scale CCS demonstrations, funded by a new CCS incentive, and a requirement for any new coal power station to demonstrate the full CCS chain (capture, transport and storage) at commercial scale.
- A long term transition to clean coal. Our ambition is to see CCS ready for wider deployment from 2020 and for any new coal plant constructed from then to be fully CCS from day one. We expect demonstration plant will retrofit CCS to their full capacity by 2025, with the CCS incentive able to provide financial support. A rolling review process, which is planned to report by 2018, will consider the appropriate regulatory and financial framework to further drive the move to clean coal. In the event that CCS is not on track to become technically or economically viable, an appropriate regulatory approach for managing emissions from coal power stations will be needed.
Alongside this we have also published a Strategic Environmental Assessment post adoption statement, consultation on draft supplementary guidance for Section 36 Applications: New Coal Power Stations, an updated Impact Assessment and a study by Redpoint analysing regulatory and financial incentives to develop clean coal.
Post consultation documents