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Dong Energy Cancels Biomass Power Project in Britain (Update1)
2010-10-12 17:41:22.556 GMT
By Marc Roca
Oct. 12 (Bloomberg) -- Dong Energy A/S canceled its plans
to develop a 300-megawatt wood-chip-fueled biomass power plant
at Hull in northeastern England.
The Danish state-owned utility decided not to pursue the
development of large-scale biomass generation in the U.K. to
focus on other energy sources, it said in an e-mailed statement
today.
"The decision to withdraw from the Humber Renewables
project is based purely on wider strategic considerations within
Dong Energy," the statement said. "The company has taken the
decision to focus on core activities such as gas-fired power
stations and offshore wind developments."
The project, announced in February, had been one of the 5
gigawatts of biomass projects in line for approval in the U.K.,
according to Bloomberg New Energy Finance data.
"A huge number of large-scale biomass projects is under
development in the U.K., and not all of them will manage to
receive financing," said Irmgard Herold, biomass analyst at New
Energy Finance. "Dong's decision to leave the crowded market
does not come as a surprise. We expect a few more projects to be
stalled."
Dong Energy was seeking planning permission for a plant
using wood pellets and waste wood as feedstock at a site from
Associated British Ports Plc. Dong's board decided to cancel the
project on Oct. 4, before the consultation period ended, company
spokesman Andreas Krog said by phone.
The Humber Renewables plant, Dong Energy's only biomass
project, would have created between 300 and 800 jobs during
construction, Krog said. The company didn't provide an estimate
for the cost.
The East Yorkshire project may have cost up to $900
million, according to New Energy Finance said.
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--Editors: Reed Landberg
To contact the reporter on this story:
Marc Roca in London at +44-20-3216-4638 or
mroca6@bloomberg.net
To contact the editor responsible for this story:
Reed Landberg at +44-20-7330-7862 or
landberg@bloomberg.net
