§ What progress has been made in setting up demonstrator plants for clean coal technology as envisaged in the energy White Paper of February 2003.
§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)My Lords, in line with the energy White Paper's statement on support for cleaner coal technologies, I am pleased to report that the cleaner coal technology programme's fourth call is currently considering a proposal from the industry for a design and costing study for retrofitting supercritical boiler technology to an existing coal-fired power plant, which would serve to demonstrate this advance in clean coal technology. It is envisaged that a contract for government support for this study will be agreed later this year.
§ Lord EzraMy Lords, I thank the noble Lord for his reply. Does he not agree that this issue has now become more important in view of the perturbation in the oil market, which is spreading to the gas market, and could last for some time? In this situation, with our abundant coal reserves, should we not be giving greater priority to clean coal technology projects rather than continuing to engage in repeated consultations, one of which has just been announced? Is not the time-scale of 2020, set in the latest consultation document, likely to deter industrial participation, whereas in the United States and Canada, such participation is being encouraged by joint funding arrangements?
§ Lord Sainsbury of TurvilleMy Lords, I agree that we should continue to give emphasis to this issue, as we have done. We made it clear in the energy White Paper that we would support R&D for cleaner coal technologies, and we are doing that. The consultation on the carbon abatement technology strategy is simply the next phase of the cleaner coal technology programme and takes that forward when the cleaner coal technology programme comes to an end.
§ Earl AttleeMy Lords, when does the Minister expect the supercritical boiler technology to be in operation? 686 Does not the lack of a demonstration plant adversely affect the possibility of exporting this technology to China and India?
§ Lord Sainsbury of TurvilleMy Lords, we are in discussions with Mitsui Babcock Engineering, and I cannot say more about the negotiations. However, as I said, we hope to have a contract in place for this study. Because this is only a design and costing study, it will be necessary for a generator to want to go ahead with this project. That will depend on there being a customer for the technology. We are supporting this because it would be very helpful in promoting a UK transfer of technology in this area to countries such as China.
§ Baroness Miller of Chilthorne DomerMy Lords, my noble friend mentioned that the time-scale with which the department seems content is very long. Does the Minister not appreciate that there is huge export potential here, given that China, as the noble Earl, Lord Attlee, mentioned, has vast stocks of dirty coal, and that clean coal technology could also help in the fight against global warming?
§ Lord Sainsbury of TurvilleMy Lords, as I said, this is clearly the thinking behind our support for this project. Even before the White Paper, we supported cleaner coal technology with R&D. We will continue to do so because of the very real opportunities in places such as China where they have a lot of coal and will be using it extensively in the future to make use of this technology.