16th Nov 2005 07:01
Scottish & Southern Energy PLC16 November 2005 Scottish and Southern Energy plc 16 November 2005Nr-5278 SSE TO OPT POWER STATIONS IN TO LARGE COMBUSTION PLANT DIRECTIVE (LCPD) Scottish and Southern Energy plc ("SSE") plans to opt in to the Large CombustionPlant Directive (LCPD) all of the capacity at its 2000MW Fiddler's Ferry powerstation in Cheshire and half of the capacity at its 2000MW Ferrybridge powerstation in South Yorkshire. To do this will require the installation of Flue Gas Desulphurisation (FGD) andan investment estimated to be around £225m. This is in addition to SSE'sexisting investment in the development of additional facilities at the stationsto increase their ability to 'co-fire' fuels from renewable sources. Lurgi (UK) Ltd has been appointed preferred bidder for the FGD installationwork. Preliminary work has already started and is expected to be completed intime for the power stations to generate electricity through a 'de-sulphurised'process in the first half of 2008. SSE acquired the Ferrybridge and Fiddler's Ferry power stations and associatedcoal stocks, which have a total capacity of 4,000MW, from AEP Energy Services UKLtd for £136m in July 2004. Opting capacity at the two stations in to the LCPD means that, following theinstallation of the FGD equipment, restrictions on their ability to generateelectricity between 2008 and 2015 will be lifted and they will be able to remainopen after 2015. The stations had been opted out of the LCPD by previous owners, which meant theywere scheduled for full closure by 2015. The electricity which the stationscurrently generate meets around five per cent of the demand for power in GreatBritain in a typical year. Extending their lives beyond 2015 will, therefore,add significantly to the long-term security of the country's electricity supply. The decision to install FGD also represents a potential opportunity for UKdeep-mined coal to help meet fuel requirements and SSE will explore thisopportunity with UK coal producers. FGD equipment is designed and operated as a chemical absorption process.Injection of a limestone slurry removes at least 94 per cent of the sulphurdioxide, one of the main causes of acid rain, and produces gypsum, which is asaleable product. In addition, SSE intends to develop new rail facilities at Fiddler's Ferry toimprove the process for delivering coal and limestone to, and handling coal at,the station. This is part of a wider review of the operational logistics at bothstations. SSE Chief Executive Ian Marchant said: "When we acquired our coal-firedgeneration plant a year ago, we said we would examine all options for maximisingthe long-term value of the assets, and we are already investing around £20m indeveloping additional facilities to increase further their ability to co-firefuels from renewable sources. "We believe that installing FGD represents a good investment opportunity and astep forward in environmental terms. It will also extend the contribution of ourcoal-fired plant to the security of the UK's energy supplies and means that wewill continue to have the country's most diverse generation portfolio, with allthe advantages that brings." - ENDS - Press Office Contact: 0870 900 0410Alan Young and Julian Reeves This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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