Project: Don Valley Power Project
*Formally known as Hatfield
Company/Alliance: Sargas Power (sold in 2014 by 2Co Energy Ltd)
Location: Stainforth, South Yorkshire, UK
Size: New build 900 MW gross, 650 MW net: 4.5 Mt/yr (90% capture)
Capture Technology: IGCC: Pre-combustion
CO2 Fate: 175 Km onshore to offshore pipeline for sequestration in offshore deep saline formations
Timing: Start 2020.
Cost of project: £5bn (€6bn).
The project was awarded €180 million from the European Energy Programme for Recovery (EEPR) in December 2009.
Don Valley Power Project was one of 9 UK projects to apply for EU funding of NER300 funding – a €4.4 billion fund earmarked to help support CCS and renewable energy projects (February 2011). The Don Valley power project was at the top of the list to receive a share of the NER300 money, however the UK government not guaranteeing financial support of the project therefore Don Valley did not receive any NER300 funding.
The Don Valley Power Project entered into the UK Government's revamped CCS competition for £1 billion. The project was not chosen as one of the top 4 projects to receive funding, thereby being out of the competition. This, coupled with the lack of financial support from the EU, has made the future of the Don Valley power project uncertain.
2Co Energy has agreed to sell a stake in the Don Valley project to an undisclosed South Korean company in October 2012, after it had previously sold 15% to Samsung C&T in March 2012 and 15% to Linde AG's UK unit in June 2012.
At the beginning of July 2014, 2Co Energy Limited, the company behind the proposed Don Valley Power Project revealed it is in talks to sell the project to privately owned Norwegian CCS specialist Sargas. This is after the project failed to recieve any government fundings in the first round of awards. The private sale went ahead in to Sargas December 2014. In 2015 Sargas announced that they were going agead with the project, but that they would focus on capture from natural gas rarther than coal. Sargas anticipates that the pilot will start construction in 2018, with operation in 2020.
CO2 is proposed to be transported via a 90 km pipeline north-east to the North Sea coast. From there the pipeline will continue approximately 300km offshore to its final storage destination. Two offshore storage options are being studied: the potential use of Talisman Energy Ltd's central North Sea oil fields for enhanced oil recovery (EOR), as well as deep saline formations in the southern North Sea.
The offshore EOR/Storage feasibility study has been completed as well as the decision to use the saline storage site known as 5/42. In the Summer of 2013 drilling appraisal was undertaken on this site.
2Co acquired Powerfuel and Hatfield in May 2011 after Powerfuel went into administration in December 2010. Prior to the acquisition of Powerfuel by 2Co, Powerfuel had received the Section 36 government consent for the new power plant project. Shell UK signed a license agreement with Powerfuel in April 2007 which allows Powerfuel to use Shell's propriety gasification technology. The project has completed front end engineering and design (FEED) studies and has received local planning permissions. 2CO had originally anticipated that there would be a project start date of 2015.
Project Link: Sarges Don Valley Power Project web page
Other Sources and Press Releases:
2Co Energy in talks to sell Don Valley CCS project (July 2014)
S. Korea Expands Role in U.K. Carbon Capture as 2Co Sells Stake (October 2012)
Yorkshire leads race for €1.5bn EU carbon capture funding (July 2012)
Linde Gets 15% Stake in 2Co's U.K. Carbon-Capture Project (June 2012)
BOC buys stake in 2Co Energy’s carbon capture project in UK (June 2012)
2Co, Progressive Energy Say Carbon-Capture Plants Pass EIB Test (March 2012)
Foster Wheeler Wins PMC Contract for the 2Co Power (Yorkshire) Don Valley Power Project in the United Kingdom (January 2012)
Don Valley Electricity Project to Enter UK Carbon Capture and Storage Contest (January 2012)
2Co applies for NER300 funding (May 2011)
2Co acquires Hatfield from Powerfuel after Powerfuel entered administration (May 2011)
DEMONSTRATION PROJECTS supported by the European Energy Programme for Recovery (EEPR) (2010)
Awarded €180 million from EU government (December 2009)
EU unveils energy plan (February 2009)