Clean coal power plan up for sale

Plans for a £3bn clean coal power station creating 4,000 jobs near Hatfield Colliery could be back on track after it was put up for sale.

Owners 2CO Energy have started negotiations with Norwegian company Sargas to sell the Don Valley Power Project over the summer.

The scheme looked set to collapse in 2012 after the Government rejected it from its £1bn funding competition without explanation, provoking fury in Doncaster.

2CO Energy said last year it was optimistic it would find private funding to keep the scheme on track. But nine months on and talks over selling it have now started.

The project would see coal from Hatfield Colliery used to produce energy. Waste carbon dioxide would be transported by pipeline and stored in rock formations under the North Sea.

Some £60m has already been spent on the project, it has planning permission and licenses to connect to the National Grid and for the supply of water.

It is the only carbon capture and storage scheme in the UK to receive an EU grant, of 180m euros, after being picked out by officials in Brussels as the best proposed scheme in Europe.

Trevor Nash, Sargas chief executive, said DVPP was unique in having European funding and the prospect of Government support for its operation.

He added: “It’s an exciting project we will press forward with urgently.”

The Government has put money into White Rose Carbon Capture and Storage Project, centred on Drax Power Station near Selby.

The Don Valley scheme could come into operation straight after the White Rose project and use its pipelines, saving significant costs.

It could be running by 2016.