RES blamed “ongoing uncertainty in UK energy policy” that had prompted a key project partner to walk away in late 2013.
“The government’s inconsistent support for dedicated biomass energy over the last two years – as well as increased uncertainty over the UK’s energy policy under the government’s electricity market reform process – has critically undermined the investment case for the North Blyth biomass power station,” the company said.
Construction of the power station would have created 300 jobs. It secured necessary approvals last year and construction had been set to start in early 2014. Its scrapping comes as a blow to the northeast region, which has already seen other major infrastructure projects either delayed or shelved, including Sunderland City Council’s proposed £120m cable-stay bridge over the River Wear, scrapped last July.
RES’ UK chief operating officer Gordon MacDougall said: “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 added: “This is a reminder to government that, without a consistent approach to energy policy, investors and developers will be deterred from delivering the billions of pounds needed to ensure the nation’s energy infrastructure is able to keep the lights on and secure cost effective electricity for British homes and businesses.”
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