E.ON UK calls for new nuclear

19 April 2006

Major UK energy player E.ON has called for energy diversity, including coal with carbon capture and storage (CCS), gas, new nuclear, biomass and renewables to ensure security of supply in the UK. The move comes as part of the UK government’s energy policy review, the consultation for which closed last week.

E.ON UK, which is undertaking a feasibility study into building a 450 MW coal-fired power station with CCS on the Lincolnshire coast and is also carrying out preliminary work on evaluating nuclear power as an investment option, has called on the government to use Phase 2 of the EU Emissions Trading Scheme (ETS) to fund investment in ‘no carbon’ generation such as CCS and marine technology.

Dr Paul Golby, chief executive of E.ON UK, said: “This Energy Review is the single most important piece of work to shape the future of the power and gas industry for the next 50 years. It is therefore critical that the UK has a sustainable mix of generation which will also help to reduce the effects of climate change and a long-term framework that allows us to invest.”

Golby also outlined that all generation options should be considered, including nuclear power, “although there is no guarantee that we will build such a power station in the UK,” he said.

Rival player RWE made a similar submission to the Energy Review in which the company called for a diversified generation portfolio, expressing a readiness to invest in a variety of low carbon generation. Andy Duff, chief executive of RWE npower said: “The UK needs to maintain a broad mix of energy generation to guarantee secure electricity in the years ahead. We also need to dramatically reduce emissions of carbon dioxide to hit environmental targets aimed at tackling global warming. Both these goals can be achieved by the energy industry under the current market framework provided the Government adopts a supportive approach to investment, streamlining regulatory processes and pump-priming advanced technologies.”

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