Powerfuel’s move into administration is grim news for supporters of carbon capture and storage, not least those companies thinking of investing in the sector.
Powerfuel was developing one of the UK’s first commercial scale clean coal power plants, but ended up unable to foot the hefty bill.
One of the administrators, Richard Fleming of KPMG, said:
Developing low carbon energy generation requires a large amount of capital upfront and the CCS development falls £635m short of the investment needed to progress the project beyond the preliminary stage. It needs moving on to a new owner with deeper pockets.