November 13, 2008
Britain to Invest in New Coal Plants
Mounting fears within government circles that Britain's utilities are poised for a new dash for gas - increasing the country's future power dependence on fuel imports from Russia - has persuaded Ed Miliband, the Energy and Climate Change Secretary, to back funding for a second clean coal demonstration power plant.
In an attempt to ensure that coal remains part of the UK energy mix, he will also set out licensing conditions for more coal power stations.
Mr Miliband's renewed pitch for clean coal, which could be timed to coincide with the Budget on Wednesday, is to be pushed out quickly to counter scepticism in the power industry that the Government has a viable strategy to promote carbon capture and storage (CCS) technology.
Meantime, the UK government also plans ambitious emissions cuts over the next decade:
The Budget statement on 22 April will contain budgets for CO2 emission cuts alongside projections for tax and spending.
The carbon budgets will run for five-year periods up to 2022 when the UK should have cut emissions by between 34% and 42%.