£700 million coal supply deal is agreed

Published on Thursday 3 July 2008 10:37

A £700 million coal supply deal, believed to be the biggest ever in Scotland, was announced today.

The five-year agreement between ScottishPower and Scottish Coal will lead to the creation of more than 100 jobs.

It was hailed by First Minister Alex Salmond as a “declaration of faith” in coal as a fuel source.

A significant proportion of ScottishPower’s supply requirements will be met under the deal.

It will be worth up to 700m, depending on the amount of coal needed.

Ignacio Galan, chairman and chief executive of Scottish Power’s parent firm Iberdrola, discussed the deal with Mr Salmond over the phone yesterday and met with finance secretary John Swinney.

Mr Galan said: “Through this agreement, ScottishPower is also demonstrating its support for Scottish coal, offering important opportunities for Scottish jobs and the Scottish economy, while reinforcing our commitment to coal generation in Scotland.”

Mr Salmond said he met with Mr Galan on the first day he was elected leader of Scotland on a trip to Longannet to discuss the firm’s plans for coal.