Dong Quits Scottish Energy Deal

12 October 2009 (Last Updated October 12th, 2009 18:30)

Plans to build a coal-fired power station in Ayrshire, Scotland, could still go ahead despite a decision by major backer Dong Energy to pull out, it has been revealed. Danish company Dong said it would now act as a design partner for the station at Hunterston, next to British Energy's n

Plans to build a coal-fired power station in Ayrshire, Scotland, could still go ahead despite a decision by major backer Dong Energy to pull out, it has been revealed.

Danish company Dong said it would now act as a design partner for the station at Hunterston, next to British Energy's nuclear plant, writes the BBC.

Its partner in Ayrshire Power, UK firm Peel Energy, said it remained committed to the project.

A spokesman for Dong told the BBC that Dong entered a joint venture with Peel Energy last year to develop a project at Ayrshire.

"We have chosen not to take up this option," the spokesman said.

The company will instead reduce its capital expenditure over the next few years.

The plant will be dependent mainly on imported coal, which has lower emissions than coal from Scottish fields.

The go-ahead for the scheme would depend on the viability of carbon-capture technology.