Eggborough Power Station may close

The 2,000MW coal-fired Eggborough power plant in North Yorkshire, UK, may cease production and close for good in March 2016. Attempts to gain government support in order to convert the station to firing biomass failed.

According to a statement released by Eggborough Power, the facility would need around £200 million (€179 million) in funding over the next three years to remain operational. 'This is financially unsustainable', the company said, 'for the 53-year-old plant.'

'We are deeply saddened at the prospect of potentially ceasing generation at Eggborough Power Station and believe that Eggborough Power could have a significant part to play in ensuring security of supply in the UK electricity market, particularly while there remains great uncertainty around new-build gas-fired generation,' comments Neil O'Hara, CEO of Eggborough Power.

Eggborough Power's unsustainable financial position has arisen as a result of a combination of market and regulatory conditions, including the recent changes to the renewable subsidies available for biomass conversion. This means it is no longer a viable option for the power station.

Additionally, uncertainty regarding Eggborough's environmental permits from 1 January 2016 could place greater constraint on emissions, impact flexibility and reduce profitability.