The United Kingdom remains devoted to the strategy of green energy production. There are five coal-fired power plants in different parts of the country, which have already been biomass-converted. Moreover, one more converting operation has been approved by the European Commission recently. This is about Lynemouth power plant in Northumberland, which will have been fully converted by the end of current year.
The Lynemouth plant is one of the smallest remaining coal-fired one in the United Kingdom. It has a staff amounting only 130 employees and was expected to be closed in 2011. However, it was acquired by the German company RWE npower in 2012, and the same year a plan to convert this power plant was developed. In 2014, the UK government notified it officially.
Bob Huntington, managing director of Lynemouth Power, said that this plan was beneficial in every respect. First, if brought into action, this project will create a reliable infrastructure, which will contribute to the development of local area. What is more, it will give an opportunity to save jobs at the Lynemouth plant. Second, it is to support the National grid by supplying more than 400 MW of low carbon electricity, which will contribute to the fulfillment of governmental climate policy.
Nevertheless, this plan required the European Commission approval in order to be brought into effect. In this case, the Commission launched special investigation in February 2015. The main aim of this investigation was to find out whether the project notified complied with the European Union state aid rules.
In particular, investigators were to estimate supposed investments and subsidies and make a conclusion, whether they led to the overcompensation. It was connected with the warning of the National Audit office, which claimed that the subsidies would be higher that it was necessary.
However, the results of investigation performed were satisfying: it was calculated that no overcompensation would be caused. Moreover, it was concluded, that the project of coal-to-biomass converting operation would not to any distortion of the market and competition. Therefore, the plan, notified by the UK government, gained the European Commission's approval.
The total cost of converting operation is estimated at £1 billion, which is expected to be finished within 18 months. After having been converted, the Lynemouth plant will be able to provide 450,000 homes with low-carbon electricity.
It is also supposed to generate 420 MW of electricity, with 390 MW of them exported to the National grid and the rest consumed at the local level. All this power will be produced by using biomass imported from the USA, Canada and some of the European countries. The price for every megawatt-hour of electricity produced will equate £105, which is twice as much as current market price is. In this case, the Lynemouth project will be receiving state aid during next 12 years.
This plan realization was being postponed during a long period of time. Such situation has raised some concerns that it will be eventually disapproved and never realized. Therefore, the approval of project was especially welcomed. Andree Stracke, chief commercial officer of RWE Supply & Trading GmbH, said that this project fulfillment will not only boost the development of biomass-fired energy production, but also will probably lead to the renewal of subsidies for on-shore wind and solar energy.
In this case, North East MEP, Jude Kirton-Darling, adds that the approval of the Lynemouth project will lead to significant benefits in terms of additional investments, contribution to the reduction of carbon dioxide emission and saving vital jobs. These benefits are to make a positive impact not only on the local area, but also on the whole country.
In summary, Lynemouth power station is to become one more biomass-fired one in the United Kingdom. The coal-to-biomass conversion has gained the approval of the European Commission recently, which was widely welcomed. This project realization is to contribute to the development of local infrastructure and the National grid as well as to the fulfillment of governmental climate policy.
