Coal Gasification (Hansard, 7 December 1992)

§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Baroness Denton of Wakefield)
My Lords, in an uncertain world we need to make full use of all available sources of energy to provide diversity of supply with coal, nuclear, renewables, oil and gas, with each making an appropriate contribution.

§ Viscount Mersey
My Lords, I thank my noble friend for that reply. Is she aware that in the United States coal gasification combined cycle plants are being built in both Illinois and Florida? Does she not hold out high hopes for this technique, as in this country it could produce more fuel for our "dash-for-gas" power stations and it would also produce an additional clean use for coal, thereby quite possibly preventing the closure of the 31 pits which are at present under threat? Is this not rather an elegant solution to our problems?

§ Baroness Denton of Wakefield
My Lords, I have recently become aware of the activities in this area in the United States. The Government have recognised for many years the importance of developing coal 5 gasification technologies. Around £220 million was invested in this area by British Gas in a major research programme over the past decade or so. Much of this expenditure was incurred when British Gas was in the public sector. We have a memorandum of understanding with the United States and I am sure that these plants will be part of our discussions.

§ Lord Mason of Barnsley
My Lords, if we are to take advantage of all forms of energy production why did the Government abandon the fluidised bed combustion technology at Grimethorpe colliery?

§ Baroness Denton of Wakefield
My Lords, the Government continue to support much activity in this area and it will be taken into account in the coal review.

§ Lord Ezra
My Lords, bearing in mind that the experiments of British Gas at Westfield to which the noble Baroness referred have been successfully concluded and that the process can now be applied in a development sense, will the noble Baroness indicate whether support is being given to any such projects in the UK? I should here declare an interest as I am involved in one of them.

§ Baroness Denton of Wakefield
My Lords, as the noble Lord will know better than I, several approaches have been made to government about support for new projects to demonstrate the use of gasification technology and the issue will be considered in the light of the current coal review.

§ Lord Cochrane of Cults
My Lords, does my noble friend agree that coal is already an excellent fuel for the reheat stage of combined cycle plants but that until a proper gas purification system is developed it is not suitable as primary fuel? We have already heard a little of what the Government think about this, but should we not be developing this facility with much more energy against the time when oil and natural gas are more expensive than coal?

§ Baroness Denton of Wakefield
My Lords, I am pleased to assure my noble friend that the United Kingdom is in the forefront of the development of this technology. My department is supporting a major research programme in collaboration with British Coal, GEC Alsthom and PowerGen to develop British Coal's Topping Cycle clean coal technology which utilises hot gas clean-up. A key element in that £30 million programme has been the examination of the feasibility of operating a commercial gas turbine on coal-derived fuel gas at elevated temperatures. The Government are contributing £11.6 million to that work.

§ Lord Donoughue
My Lords, does the Minister agree that the information provided to the House by the noble Viscount is very important and suggests that we may be on the brink of a technological breakthrough which would ensure that coal is both price competitive and clean? In those circumstances is it not utter lunacy even to contemplate closing down the British coal industry?

§ Baroness Denton of Wakefield
My Lords, the noble Lord's question is a little outside the specific area of the Question on the Order Paper. He well knows the breadth of the discussions taking place under the coal review.

§ Lord Stoddart of Swindon
My Lords, will the noble Baroness allow me to disagree with her when she says that my noble friend's question was beyond the scope of the Question on the Order Paper? I think that it was very much on the ball. The noble Baroness has just told the House that coal gasification will be considered in the current review of the coal industry. Why was it not considered—or was it considered—before the Government came forward with their plans to close 31 pits? That is what the House wants to know. Will she please give us an honest answer?

§ Baroness Denton of Wakefield
My Lords, I am pleased to be able to tell the noble Lord that the coal task force carried out a thorough evaluation of the UK's coal research requirements. The Government will respond to the task force's report in due course. The Government are well aware of the issue. I should remind the noble Lord that coal gasification may enhance the competitiveness of coal but the volume of coal used for electricity generation depends ultimately on its ability to compete with other fuels and technologies.