LONDON — E.ON has announced that it is reconsidering its plans to construct a biomass-fired power facility in the UK given the Department of Energy and Climate Change (DECC)’s proposed cuts to renewable energy subsidies.
However, just 24 hours later, E.ON said it would “now take some time to review the prospects for the project” and assess “how it fits with [its] portfolio of renewable energy investments in the U.K.”
The government is planning reductions in subsidies for biomass plants beginning in April 2016. In response Drax, operator of the largest coal-fired power plant in the UK, has also decided not to build a planned 290 MW biomass plant, and said it is “considering options” for two more planned plants.
Operations at the plant, which would have burned imported and UK virgin wood, dedicated energy crops and locally-sourced recycled wood, were expected to commence in 2015. DECC had endorsed the proposed plant’s projected creation of 325 construction jobs and 35 full-time jobs.
The German power major is currently building another biomass plant in the UK, the 30 MW Blackburn Meadows power station in Sheffield, and predicts that 30 full-time jobs will be created when the plant is operational. E.ON also operates a biomass plant in Scotland.