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Don Valley Power Project

 
Don Valley Power Project Fact Sheet: Carbon Dioxide Capture and Storage Project * Formally known as Hatfield

Company/Alliance: 2CO (Former partners: Powerfuel, Kuzbassrazrezugol (KRU), and Shell UK)
Location: Stainforth, South Yorkshire, UK
Feedstock: Coal
Size: 900 MW: up to 5 MT/Yr (90% capture)
Capture Technology: IGCC - Pre-combustion
CO2 Fate:
EOR offshore, North Sea oil fields
Timing: 2CO is going to make a decision in 2013 to see if there is necessary financial support from the UK government and EU for the project to proceed: Anticipated project start (2016)

Motivation/Economics: Total capital costs to re-open the mine are expected to be around ₤110 million. The total construction cost of the IGCC power plant can be up to ₤800 million (US$1.6 billion). Awarded €180 million from the EU government in December 2009 as part of government economic recovery act. Don Valley Power Project was one of 9 UK projects to apply for EU funding of NER300 funding – a €4.4 billion fund earmarked to help support CCS and renewable energy projects (February 2011). 2CO still needs £653 million (US $1 billion) to complete the project.

Comments: 2CO acquired Powerfuel and Hatfield in May 2011 after Powerfuel went into administration in December 2010. The company says it is also putting in place a financial guarantee that will enable a €180 million grant from the European Commission to be drawn down.
Prior to the aquisition of Powerfuel by 2CO: Powerfuel had received the Section 36 government consent for the new power plant project. Shell UK signed a license agreement with Powerfuel in April 2007 which allows Powerfuel to use Shell's propriety gasification technology. Hatfield was eliminated from the UK government CCS competition on the grounds that it makes use of pre-CCS technology. However the project could still receive 250 million euros from the EU energy investment.
October 2010, project on hold until Government clarifies levy from previous government which enacted a levy on electricity suppliers to fund CCS projects.

Project Link: 2CO Don Valley Power Project webpage

Don Valley Power Project

2Co Energy Ltd acquired Powerfuel Power Ltd and the Hatfield Carbon Capture and Storage (CCS) project at Stainforth in South Yorkshire, in May 2011, and has renamed the project the Don Valley Power Project (DVPP). This limited information on the project has been made available on the day the acquisition was made and will be extended shortly.
CCS has an important role to play in the UK meeting its CO2 emissions reduction targets. The Yorkshire and Humberside region has the UK's largest concentration of coal and gas fired power generation and the CO2 emissions from those plants will have to be reduced dramatically if they are to be able to continue to operate. The plant at Stainforth, and the infrastructure it will create, have important roles to play to enable the region to continue to generate power from fossil fuels and to allow other energy intensive industries, such as steel and cement, to also install carbon capture technology. Other new businesses which will also need to capture and reduce their CO2 emissions may also be attracted to the region.
The project at Stainforth is one of the UK's and EU's leading CCS power projects and aims to be one of the four projects that the UK government is committed to supporting. It is a 900MW Integrated Gasification Combined Cycle (IGCC) power plant which would capture and store up to 5 million tonnes per year, or 90%, of the CO2 emissions that would otherwise be emitted to the atmosphere.
2Co Energy plans to store the CO2 in North Sea oil fields which provide the most secure and permanent storage for CO2. CO2 also helps produce more of the oil than would otherwise be recoverable which can significantly extend the life of the oil field and the associated jobs.

Although the plant has already been granted its Section 36 planning application, a final investment decision will only be taken when the project has won the necessary financial support from the EU and UK government. It is anticipated this will be done in time for the investment decision to be taken by mid-2013 and, after a construction period of a little over 3 years, the plant should be commissioned in 2016.