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South Hook CHP Project Final Investment Decision deferred.

Further information here.

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Introduction

An application for a development consent order (DCO) on behalf of Qatar Global Ventures Ltd., ExxonMobil Power Ltd. and Total Gas and Power Business Services S.A.S. (together the Developers) to construct and operate a combined heat and power (CHP) plant within the existing boundary of the South Hook Liquefied Natural Gas (LNG) Terminal (the LNG Terminal) has been approved by the Secretary of State for Energy & Climate Change.

The Developers have identified an opportunity to provide high efficiency, low-carbon energy to the UK by building a CHP plant within the existing boundary of the LNG Terminal. The CHP plant would be designed to make highly efficient use of the heat it produces. All the power generated by the CHP plant would be either exported to the electricity grid, or would replace power currently imported by the LNG Terminal. Building the CHP plant would produce enough electric power to supply up to 900,000 homes, and significantly reduce gas utilisation by the LNG Terminal.

Formal consultation with statutory consultees and the general public was undertaken between 15 August 2012 and 16 April 2013 and is now closed. An application for a development consent order was submitted to the Planning Inspectorate (PINS) on 31 May 2013. PINS accepted the application on 26 June 2013. After a six month examination process, a recommendation was made to the Secretary of State for Energy & Climate Change who approved the application on 23 October 2014.

At the end of January 2015 the Board of Directors of South Hook CHP Limited determined that, in the light of market conditions confirmed that the decision regarding proceeding with the construction of the proposed South Hook combined heat and power (CHP) plant near Milford Haven, Pembrokeshire would be deferred and the Project placed on hold.  Development work was brought to minimum levels required to maintain the integrity of the work done to date and allow the timely and efficient restart of development if required.