A spokesperson for Dong Energy said: “Due to the financial situation, which affects Dong Energy especially on the power production side – due to less sale and falling prices – Dong Energy has decided to strengthen its capital structure, which includes reducing investments in the coming years.”
However, Reuters quoted Dong’s executive vice president Niels Bergh-Hansen as saying that the company is pulling out of the project for environmental reasons.
Last year, the company entered into a joint venture with Peel Energy to create a new company, Ayrshire Power in order to explore the possibility of gaining planning permission for a power station at Hunterston, West Kilbride, North Ayrshire. The companies intended to fuel the plant by by coal and up to 15% biomass, such as wood. It was also going to utilise carbon capture and storage technology.
Despite the decision of Dong to withdraw from the project, Peel Energy said that it remained committed to the power project.
According to Peel Energy an application regarding the construction of the power plant will be submitted to the Scottish government later this year. Reportedly, if the planned Hunterston plant goes ahead, it will have the capacity to power about two million homes.
Dong Energy has also dropped plan to build another coal fired power station in Germany. However, the company is expected to proceed with a project at Humberside, England, by fitting it for gas and biomass.
