§ Mr. PickthallTo ask the Secretary of State for Trade and Industry what plans she has to assess the feasibility of setting up demonstration plants for cleaner coal power generation technology. [974]
§ Mr. WilsonI can announce that a new review will commence this month and is expected to report its findings at the end of the year.
Its Terms of Reference are:
To assess the value of a cleaner coal demonstration plant from four key perspectives:
1. It will specifically take account of the relative benefits and costs, in comparison to other sustainable energy technologies, arising from the use of cleaner coal plant for power generation in the UK to:Support the Government's climate changes policy objectives through the reduction of CO2 emissions in the longer term and assessing the potential for CO2 capture and sequestration.The contribution it would make to the overall energy policy objectives of the Government "to ensure secure, diverse and sustainable supplies of energy at competitive prices".2. It will complement other ongoing work looking at energy choices in the context of the need to make substantial reductions in greenhouse gas emissions over the longer term. Within the context of using coal for power generation, such choices should not only cover cleaner coal plant but also alternative means for extracting the energy from coal, e.g. underground coal gasification.3. It will consider the four main technical options currently available, each of these will be assessed in the review to determine which is the most appropriate both in terms of value for money and environmental impact. These are:Retrofitting cleaner coal technology components to existing combustion plantsRetrofitting coal gasification plant to older combined cycle stations.New build of supercritical or coal gasification on a brown field site.Cleaner coal plant with CO2 capture and storage.4. It will determine the feasibility of a demonstration project/programme in terms of:Value for money in terms of promoting the wider use of cleaner coal generation plant including benefits to the UK economy and the potential for export sales.The various types of plant amenable to clean coal technology.The cost per tonne of carbon saved, compared to other sustainable technologies.The emerging evidence on the viability, security, environmental impact and acceptability of capture and storage technologies.29WThe impact which overseas support schemes have actually had for cleaner coal plant, particularly in the United States, EC and Japan.State aid issues.The appropriate use of economic instruments to recognise the environmental case for cleaner coal plant, alongside other technologies.The nature of the competition or procurement route to support the building of a demonstration project(s) should agreement be secured to develop it.