Eon reviews gas CHP portfolio in ‘very challenging’ market

Eon is planning to close one gas-fired combined heat and power station and slash costs at three others in response to tough commercial conditions, the company announced on Wednesday.

It plans to close its Stoke closed cycle gas turbine (CCGT) early, which provides 56MW of electricity and 60 tonnes per hour of steam to a Michelin factory. It was expected to run for at least 15 years from its launch in 2002 but Eon said there was now a “lack of viable commercial options” for the plant.

Sandbach, Castleford and Thornhill facilities, with a combined power generation capacity of 162MW, are also under threat. Eon is restructuring and “working closely with employees and contractors… to discuss potential options”, it said.

Richard Pennells, Eon’s UK country director of steam and CCGT, said: “Our absolute priorities are working to support our colleagues and contractors through this change.

“Over the last five years Eon has invested over £6bn in the UK’s energy infrastructure but there is no doubt that the operational environment remains very challenging,  particularly for CCGT power stations which in many areas are continuing to fight for survival in the current market, providing increasing uncertainty around future generating capacity planning.”