Coal news and updates

A Chinese energy giant is bidding to acquire a power plant that supplies 4pc of Britain’s electricity needs – just days after backing plans for Britain’s first new nuclear plant in a generation. 

 

Meiya Power, a subsidiary of China General Nuclear Power Group (CGNPG), is in the running to acquire the 2 gigawatt (GW) Eggborough coal-fired power station in North Yorkshire. 

 

Environmental regulations and the carbon tax are likely to force the plant to close down within a couple of years – putting Britain at even greater risk of blackouts – unless it is converted to burn “biomass” instead. 

 

Eggborough’s current owners, a consortium including several hedge funds, are seeking a major injection of equity to fund the £500m conversion, or an outright sale. 

 

CGNPG, which this month agreed to buy a stake in EDF’s proposed £16bn nuclear power plant at Hinkley Point in Somerset, is understood to be carrying out final due diligence to make a binding bid for Eggborough next month. Rothschild is running the auction. 

 

Source: www.telegraph.co.uk