British independent renewable energy developer, Renewable Energy Systems (RES) has announced it will be ’ceasing work’ on its £300-million biomass power station project at the Port of Blyth in Northumberland.

According to RES, the decision came as a result of the UK government’s ‘inconsistent’ support for biomass energy over the last two years, as well as ‘increased uncertainty’ in the UK’s energy policy under the government’s Electricity Market Reform process. This reportedly led to one of the ‘key project partners’ in the Port Blyth project pulling out in late 2013.

The decision to abandon construction of the plant means that 300 construction jobs and 50 full time, long-term operational jobs at the plant will be lost, along with ‘hundreds of millions’ of pounds of investment and the annual Community Benefit Fund .

According to RES, the project would have formed a long-term partnership with the Port of Blyth in terms of fuel transport, handling and occupancy, providing a ‘magnet for economic growth in Northumberland and the North East region’ as well as ‘helping to secure further growth’ of the port.

RES’ Chief Operating Officer for the UK, Gordon MacDougall, stated: “Despite the support the project enjoys locally due to the significant benefits it would bring to the local and regional economy, the North Blyth Biomass Power Station currently faces insurmountable investment barriers due to uncertain government energy policy.

“It’s bitterly disappointing for RES that we are unable to bring this exciting project forward, and deliver the significant boost it would have represented for the Blyth and Northumberland economy. However, the gradual erosion of support for dedicated biomass leaves us with no other option.”

He concluded by saying RES were ‘grateful’ for the support they received from stakeholders like Northumberland County Council and the Environment Agency, but added that as the UK’s energy policy stands the firm ‘cannot make an investment case to take this project forward’.

RES added that government should now clarify its support for renewable energy as a ‘vital part of the UK energy mix’, so major investors and independent generators have enough certainty to ‘continue investing in UK infrastructure’.

Response to the decision

Also responding to the decision, Chief Executive of the Renewable Energy Association (REA), Dr Nina Skorupska, said: “This is a bitter blow for RES, for the Northumberland economy, for our energy security and for climate change objectives. The government used to have a clear policy of supporting the most affordable low carbon technologies, which saw biomass projects attract healthy investment.

“However, recent government actions have eroded investor confidence in the biomass sector. The result is project cancellations totalling hundreds of MWs [megawatts of electricity] and millions of pounds of inward investment. This row-back on biomass leaves a huge hole in the government’s plans to keep the lights on with low carbon technology. It is also a missed opportunity for cost-effective emissions savings and thousands of new jobs.

“The government now must move swiftly to protect both existing and future investment, by giving a strong, clear and positive message that the UK is still open for business for biomass.”

Biomass in the UK

Plant biomass combustion accounted for 18.3 per cent of the UK’s renewable energy in 2012, and DECC’s ‘Renewables Roadmap’ estimates that by 2020, biomass could potentially provide between 26 and 42 per cent of renewable energy in the UK, but there are worries the government could be too dependent on biomass to reach its statutory target of generating 15 per cent of the UK’s energy from renewable sources by 2020.

Indeed, a 2012 report from the RSPB, Friends of the Earth and Greenpeace warned that producing power through certain types of biomass combustion can be ‘dirtier than coal’.

Read more about biomass in the UK.