New coal-burning power stations will get Government approval, setting up fresh clashes between ministers and environmentalists.
By James Kirkup, Political Correspondent Last Updated: 7:24PM BST 21 Apr 2009
Ed Miliband, the energy secretary, is expected to set out rules for more "carbon capture and storage" coal plants, despite industry doubts about whether so-called "clean coal" is cost-effective and questions about the technology involved.
Mr Miliband is expected to give the go-ahead for at least one new carbon-capture coal plant, financially supported by the Government to demonstrate the new technology. A new licensing regime for new coal stations will also be set out.
Energy firms fear say that they still cannot profitably operate CCS coal plants and are likely to develop gas-fired plants instead, increasing the country's dependence on imported energy.
Mr Miliband is exploring options for persuading the industry to look again at coal. One option, still under discussion, is for a new levy on household energy bills that would raise money to support the new carbon capture technology.
Mr Miliband's department estimates that by 2020 a third of UK power plants will be closed due to age or rising environmental standards.
With "renewable" sources like wind and wave power still struggling to be profitable on a large scale and new nuclear plants still several years off, insiders believe that traditional fuels like coal must have a continuing role.
Carbon capture is supposed to work by trapping CO2 produced by burning fossil fuels like coal then storing it underground to prevent it reaching the upper atmosphere where many scientists say it contributes to climate change.
There are continuing scientific doubts about how safely and effectively carbon can be stored.
But the argument for CCS was boosted earlier this month when a study published in the journal Nature has shown that for millions of years carbon dioxide has been stored safely and naturally in underground water in gas fields saturated with the greenhouse gas.