§ Mr. BurnettTo ask the Secretary of State for Trade and Industry what financial and other inquiries were made by(a) her Department and (b) the South West Regional Development Agency before it announced the conditional grant made to Peninsula Power in respect of the proposed Biomass Electricity project at Winkleigh, Devon; and what inquiries are being made now. [157144]
§ Mr. Timms[holding answer 27 February 2004]: South West RDA made no financial inquiries into Peninsula Power since it is not funding the core operation costs of that company. The RDA purchased 36 acres of land at Winkleigh Airfield to ensure that the opportunity to build the proposed biomass plant is not lost before the issues are properly considered as part of the planning process. The RDA has undertaken the necessary due diligence in relation to the acquisition of the land.
The RDA has also provided further funds to ensure feasibility studies are comprehensively carried out and fully available to the public. It will insist that the 1069W consultants appointed to undertake the studies provide a "Deed of Warranty" to ensure the quality of the work undertaken.
The DTI grant to the developer from the Capital Grants Scheme is an arrangement under which payments are only made in arrears of agreed milestones and where matching funding has been provided. As yet no payments have been made under the DTI grant. When assessing the original application for the grant, the DTI followed its laid-down procedures and which involved the advice of independent advisers.
Should the plant obtain all the necessary planning and environmental consents, then Peninsula Power has an option to purchase all or part of the site from South West RDA at market value. At that point, the RDA will not dispose of the land to Peninsula Power unless it is satisfied that all the necessary funding to complete any approved project is in place, necessitating the undertaking of financial checks at the appropriate time.
§ Mr. BurnettTo ask the Secretary of State for Trade and Industry what steps(a) she and (b) the South West Regional Development Agency have taken to satisfy themselves that the advanced gasification and turbine technology for the proposed Biomass Electricity project at Winkleigh, Devon is proven and will not fail; and what their findings were. [157143]
§ Mr. Timms[holding answer 27 February 2004]: The DTI has considered the technology as part of its Bio-Energy Capital Grant scheme which allows development of technology processes. The South West RDA does have a wider interest in gasification technology in the region and will be appointing independent consultants to appraise the technology. The consultants will specifically report on the gasification technology proposed at Winkleigh and will liaise closely with DTI. The findings will be made available to the public.
§ Mr. BurnettTo ask the Secretary of State for Trade and Industry if she will list the payments(a) authorised and (b) paid by (i) her Department and (ii) the South West Regional Development Agency towards the proposed Biomass Electricity Generation project at Winkleigh, Devon. [157146]
§ Mr. Timms[holding answer 27 February 2004]: The South West RDA authorised project funding of £623,900 to acquire 36 acres of land and pay for feasibility studies (an Environmental Impact Assessment, a Biomass Feedstock and Market Development Study and an Economic Impact Assessment) and limited technical costs (including costs towards a public consultation exercise).
The feasibility studies and technical work will provide results that will have wider implications for other, similar, projects in the region. The studies will also be made fully available to the public, including the local community, key regional partners and other developers.
To date (26 February 2004) the SWRDA has paid £338,200 for the acquisition of the land. In total £384,391 has been paid to date (26 February 2004) including other associated costs.