UK-based renewable energy projects developer RES has ceased development work on its biomass power plant located at the Port of Blyth in Northumberland.
According to the company, the project has been suspended owing to the withdrawal of a key project partner in 2013 due to ongoing uncertainty in UK energy policy under the government’s Electricity Market Reform process.
The £300m North Blyth biomass power project also lacked the government’s support for dedicated biomass energy over the last two years.
RES’ move would affect about 300 construction job opportunities, 50 full time jobs and annual Community Benefit Fund.
The company wants the government to clarify its support for renewable energy as a vital part of the UK energy mix so that the independent generators could invest in the nation’s infrastructure.
RES COO Gordon MacDougall said the project received support from the local people but faced insurmountable investment barriers due to uncertain government energy policy.
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By GlobalData"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," MacDougall added.
"However, the gradual erosion of support for dedicated biomass leaves us with no other option.
"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."