Our plans to build the UK's first coal-fired units for more than 20 years at Kingsnorth in Kent and our decision to enter Kingsnorth into the Governent competition to build the world´s first commercial scale Carbon Capture and Storage (CCS) plant, have sparked a national debate on the future of coal as part of the UK´s energy mix.

We are proposing to replace the existing 2,000MW coal-fired plant with two 800-megawatt cleaner coal units. We´re now working to secure planning approvals from the Government. Compared to the existing units at Kingsnorth, the new technology will make our new plant 20% more efficient - allowing for a reduction in carbon emissions of two million tonnes a year - if run at the same level. On top of that, we are looking at how we can apply more new measures that will reduce this even further.

The Carbon Capture and Storage (CCS) technology that is currently under development removes the carbon dioxide that burning coal produces before it escapes into the atmosphere. It could reduce carbon emissions from coal plants by as much as 90%. We can then store it at safe locations, such as under the seabed in depleted gas fields in the southern North Sea. We plan to use Kingsnorth to develop carbon capture and storage so it can be proven at full industrial scale, meaning other companies and countries could do the same.

The Government believes CCS is a viable technology and is holding a competition to provide funding for the development of a commercial scale project. We are entering into this competition and hope that Kingsnorth will become a pilot project for the global energy industry. All the component parts of CCS have been proven in other countries. What has not yet been done is to introduce CCS into a large-scale power project. This is why the Government decided to hold the competition.

We believe that if we are successful, Kingsnorth could be a world leader. This would encourage other countries that are heavily dependent on coal-fired power generation, like India and China, to adopt the technology.