US bid for new coal-fired power station in Grangemouth

PLANS are underway to build a coal-fired power station at a Scottish port.

A group led by a US energy company is planning to build the power station. Summit Power Group, based in Seattle, said it has entered into an agreement with National Grid and Petrofac to seek funding for the development of a low-carbon power plant in Grangemouth that will use Carbon Capture and Storage technology (CCS).

The Caledonia Clean Energy Project will be submitted to the UK Government for funding under the CCS Delivery Competition.

Summit said the plant would capture 90 per cent of emissions to produce low-carbon electric power as well as hydrogen gas for commercial use.

The project site has been identified “to take advantage of synergies with other facilities for industrial gas supply and to support CO2 capture”.

Summit said the location close to the North Sea was ideal for CO2 storage and oil recovery opportunities.

The US company is currently developing a similar project in Texas and said it intends to replicate many aspects of that project at Grangemouth.

The Texas Clean Energy Project was awarded £284 million by the US Department of Energy in 2010.

Proposals for a coal-fired power station at Hunterston in North Ayrshire were rejected by the local council last year.

A public inquiry is to be held before ministers make the final decision on whether to approve that proposed scheme, with the company – Ayrshire Power – vowing to fight on with its plans.