Air Pollution Control Equipment Services, Clean Coal Technologies

RWE, DONG & Peel Energy join forces for UK CCS plant

10 December 2008 – Peel Energy, a subsidiary of Peel Holdings, has formed a joint venture with RWE Npower and Denmark’s Dong Energy to develop a carbon capture and storage (CCS) plant in the North Sea.

RWE Npower has taken a 75 per cent stake in Peel Energy CCS Ltd, which was formerly jointly owned by Peel Energy and Dong Energy.

The restructured joint venture, with RWE Npower’s involvement, has pre-qualified for the government’s CCS Demonstration competition.

Should the project be successful in the competition, it would involve a capture facility of up to 400 MW which would form part of a new generation coal-fired power station.

The CO2 it emits would be transported to disused gas fields in the North Sea where it would be permanently stored. The project could be up and running by 2014.

RWE Npower has already commissioned a separate test facility at its Didcot coal-fired power station in Oxfordshire.

Owen Michaelson, chairman of Peel Energy, said: “Peel is committed to low carbon generation and we are determined to be at the forefront of developing the know-how to capture and permanently store CO2 from coal-fired power stations.

“We have always seen this as an immense challenge requiring a very strong and wide ranging partnership. We believe we have now created the foundation of that partnership with Dong Energy and RWE Npower.”

RWE Npower chief executive, Andrew Duff, said: “If carbon capture and storage can be proven at an industrial scale, it would have major benefits, not just in the UK, but also abroad where coal stations are being developed rapidly and may create opportunities for UK industry in the export of this technology globally.”