Friday, 7 March 2014

This is a reminder to Government that, without a consistent approach to energy policy, investors and

British independent renewable energy developer RES has today announced it is ceasing work on its
biomass power station project at the Port of Blyth in Northumberland.
RES’ decision follows the withdrawal of a key project partner in late 2013 due to ongoing uncertainty in UK
energy policy. The Government’s inconsistent support for dedicated biomass energy over the last two years
- as well as increased uncertainty over the UK’s energy policy under the Government’s Electricity Market

Reform process - has critically undermined the investment case for the North Blyth Biomass Power Station.
The decision to end the biomass power station project means the loss of hundreds of millions of pounds of
investment into the Blyth estuary and wider Northumberland economy. The 300 construction job
opportunities and 50 full time, long-term operational jobs at the plant and annual Community Benefit Fund
will also be lost.

The project would have brought a long-term partnership with the Port of Blyth in terms of fuel transport,
handling and occupancy, helping to secure further growth of this important employer and economic engine of
the region. It would also have provided a magnet for economic growth in Northumberland and the North
East region.

RES’ Chief Operating Officer for the UK Gordon MacDougall stated:
“Despite the support the project enjoys locally due to the significant benefits it would bring to the local and
regional economy, the North Blyth Biomass Power Station currently faces insurmountable investment
barriers due to uncertain Government energy policy.
“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. However, the
gradual erosion of support for dedicated biomass leaves us with no other option.”
RES’ announcement also calls into question the Government’s commitment to renewable energy and
independent generators, at a time when it appears to be supporting polluting fossil fuels - including potential,
but unproven, shale gas - and costly nuclear power. In addition, the Government’s preference for the
conversion of existing coal fired power stations to biomass over dedicated biomass generating capacity is at
odds with the urgent need to bridge the looming capacity crunch in the UK energy system.
RES has called upon the Government to clarify its support for renewable energy as a vital part of the UK
energy mix, in order to ensure that independent generators and major investors alike have the certainty
needed to continue investing in UK infrastructure.
Document Ref: 02377-010337 Issue: 01
Page 2 of 2 / RES stops work on £300m North Blyth Power Station
Gordon MacDougall concluded:
“RES is grateful for the support we have received from stakeholders including the local community,
Northumberland County Council, Environment Agency and project partners such as the Port of Blyth.
However as the UK’s energy policy currently stands, we cannot make an investment case to take this project
“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
Notes to editors:
1. RES is one of the world’s leading independent renewable energy project developers with operations
across Europe, the Americas and Asia-Pacific. At the forefront of wind energy development for over
30 years, RES has developed and/or built more than 8,000MW of wind energy capacity worldwide.
In the UK alone, RES currently has more than 1,000MW of wind energy projects either constructed,
under construction or consented. RES is active in a range of renewable energy technologies
including large-scale biomass, solar, wave and tidal and on-site renewable installations. For more

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