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DECC labels Eggborough biomass conversion 'unaffordable'

The conversion of a North Yorkshire power station to biomass has left off a list of ‘provisionally affordable’ schemes published by the Department of Energy and Climate Change (DECC).

The Eggborough Power Plant conversion had originally been included under projects that were marked down for funding under the Final Investment Decision Enabling for Renewables (FID) scheme, a mechanism to fund projects during a ‘hiatus’ of investment in low carbon generation before Electricity Market Reform (EMR) legislation comes into effect.

But the latest ‘provisionally affordable’ FID list does not include Eggborough.

Energy minister Ed Davey was recently warned by 11 Conservative MPs that “last minute changes to the project selection criteria” would jeopardise the project.

A letter, signed by seven MPs and backed by a four others, said the Eggborough biomass conversion would be the “single biggest construction project in the UK” in the first quarter of 2014 if it went ahead on its start date of 6 January.

A statement from DECC read: “It should be noted that the final affordability assessment will not be carried out until spring 2014 when applicants confirm that they want an investment contract through a binding application.”



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