Sheffield City Region Local Enterprise Partnership

LEP disappointed at overlooked 2CO Energy bid

Published 30th October 2012 at 12:00am

The Local Enterprise Partnership has expressed disappointment at news that the Don Valley Power project has not been selected in a Government shortlist for European funding.

An oxyfuel capture project on the Drax site in North Yorkshire is one of  four bidders to have been shortlisted for the next phase of the UK’s  £1bn carbon capture and storage (CCS) competition. But the front runner 2CO Don Valley Power project has missed out.

The decision to overlook the 2CO project was met with shock as the project was ranked number one in Europe and projected to reach financial close in 2014, generating 2,500 jobs and hundreds of millions is economic benefits between 2014 and 2019.

James Newman, Chairman of the Sheffield City Region Local Enterprise Partnership, has spoken out stating:

“The LEP is extremely disappointed that 2CO Energy’s Don Valley Power project has not been selected by the Government as part of its shortlist for European funding.

“We cannot understand why Government has decided not to support this bid which is the UK’s most advanced project and Europe’s top ranked carbon capture project.

“This decision has seriously jeopardised plans to create a European centre for cleaner energy production which would have had a huge impact on the economic growth of not only the Sheffield City Region, but also Leeds and Humber LEP areas – creating thousands of jobs in the North of England.

“This decision does not seem to be in line with the Government’s stated ambition of being at the forefront of this high technology and environmentally friendly new industry and I agree with the Mayor of Doncaster that it is important that we seek an immediate meeting with Government.”

Mayor of Doncaster, Peter Davies said:

“I consider the Government’s decision outrageous and beyond belief given Doncaster’s Don Valley Power Project was leading the way in the Carbon Capture and Storage industry. I am in a state of shock and bewilderment that the project could not make the short list.

“The project was at an advanced stage compared to the short listed bids which are years behind in terms of their development. It makes you question the Government’s commitment to Carbon Capture and Storage as they are turning the clock back.

“The project had already benefited from €180 million of European funding for development purposes and was the frontrunner for additional funding from the European Union. This investment could now go down the pan.

“The project would have immeasurable benefits for the Doncaster and theUK. It would deliver £5billion of investment inUK infrastructure, create more than 4,700 jobs with around 3,000 planned for Stainforth, open up new export markets and have significant environmental benefits.  It was also a competitive scheme especially compared to some of the other low carbon schemes the Government is supporting like wind farms.

“I will do all I can to challenge this deplorable decision which is a backward step and makes no sense at all.”

Lewis Gillies, CEO, 2Co Energy Limited said:

“This is truly disappointing news for the Doncaster area where we would have built this plant and for our world-class project team working to deliver it. We will complete the current phase of the project and meet the knowledge-share obligations of our existing EEPR funding from the EU but we cannot take this project further without funding from the UK government.  In the meantime, we are trying to come to terms with how the UK’s most advanced project that has twice been selected by the EU for funding and is currently sitting as Europe’s top ranked project has not even made it to the UK’s shortlist.’


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