BANKS DODGY DEALS CAMPAIGNS
Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate
Banks and Human Rights
Banks and Nature
Our projects
Tracking the NZBA
Banks and Russia
Banks and Steel
Tracking the Equator Principles
Tracking the PRBs
Find a Better Bank
Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Donate Mailing list Facebook Twitter Linkedin Login
Home › Partner news ›
Partner News

Grangemouth renewable energy biomass power station: an unsustainable, high-risk potential investment

Investor briefing on 120MW biomass power plant in Scotland
2017-11-01
By: Biofuelwatch
Contact:

Almuth Ernsting, UK, +44 (0) 131 623 6200

Rachel Smolker, US, + 1 802 482 2848 or +1 802 735 7794

Grangemouth, Scotland. Photo: Dunpharfain, CC BY-SA 4.0
2017-11-01
By: Biofuelwatch
Contact:

Almuth Ernsting, UK, +44 (0) 131 623 6200

Rachel Smolker, US, + 1 802 482 2848 or +1 802 735 7794

In June 2013, the Scottish Government approved a highly controversial planning application by Forth Energy for a 120 MWe biomass “combined heat and power plant” at Grangemouth Port.

The proposal had faced strong opposition, including by three local Community Councils and because of concerns over impacts on air quality, sustainability, visual amenity, fisheries and water pollution. Falkirk Council objected because of concerns over visual impacts. Then, in March 2014, Forth Energy announced that it was pulling out of the project, after SSE had decided not to invest in it. However, it said that it would look for any other developer interested in taking over the plans and the planning consent .

Now, Grangemouth Renewable Energy Ltd, subsidiary of a start-up company called Silva Renewable Energy, is seeking to develop the plant. It has won a Contract for Difference for a smaller but still large plant of 85 MWe capacity. A Contract for Difference is a subsidy taking the form of a guaranteed purchase price for electricity set above the wholesale market price, called a “strike price” .

There are serious concerns that Silva Renewables could be looking to source wood pellets from highly biodiverse coastal hardwood forests in the south-eastern US, which are being clearcut, increasingly for wood pellets. This would be disastrous for biodiversity in a region designated as Biodiversity Hotspot, and it would result in overall greenhouse gas emissions no longer than those from a coal power plant of the same size.

However, there are also serious questions about the viability of the proposal and the credibility of Grangemouth/Silva Renewable Energy as a power station developer:

  • The directors have no track record of developing any power project, and have had little financial success with previous ventures;
  • The level of subsidies awarded to the proposed plant is well below that for any existing biomass power plant in the UK and the strike price awarded to the plant is much less than estimates for the levelised cost of electricity for biomass power plants, let alone biomass CHP plants;
  • There is no longer a credible prospect for supplying heat from the plant, which means that the planning conditions and the conditions for receiving the Contract for Difference may not be met;
  • The Scottish Government has set a new legal limit for fine particulate (PM2.5) concentrations from 31.12.2020. Existing PM2.5 levels in Grangemouth are near that legal limit. In order to obtain a Pollution Prevention and Control permit from the Scottish Environmental Protection Agency (SEPA), PM2.5 emissions would need to be set and kept below what can a power station of this size can be expected to achieve.

See here to download the full briefing.

Sections
Banks Dodgy Deals Campaigns
Our campaigns
Banks and Climate Banks and Human Rights Banks and Nature
Our projects
Tracking the NZBA Banks and Russia Banks and Steel Tracking the Equator Principles Tracking the PRBs Find a Better Bank Banks and the OECD Guidelines
Media
News Publications
Raiffeisen Out! Bank.Green End Coal Finance Plastic Banks Tracker Defund TotalEnergies Financial Exclusions Tracker Equator-Complaints.Org Don't Buy into Occupation Banks & Biodiversity Forests & Finance Drop JBS StopEACOP Fossil-Free Finance
BankTrack
About BankTrack Organisation Our team Our board Our annual reports Funding and finances Guiding principles Our history BankTrack in the media Team up with us Our privacy policy Donate Visit us
Successes Contact BankTrack
Vismarkt 15
6511 VJ Nijmegen
The Netherlands
Contact@banktrack.org
Donate Mailing list Facebook Twitter Linkedin
©2023 BankTrack
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted