A new generation of power plants would build on the North-East’s traditional links with coal. Deputy Business Editor Deborah Johnson reports on why confidence is high that the region will benefit.

THE region has a long and proud association with coal.

At its peak, the North-East produced a quarter of the UK’s supply and employed hundreds of thousands of men.

Yesterday, the prospect of a reborn industry moved closer to reality as it was revealed Teesside is one of four potential destinations for a new generation of power stations – probably in Wilton and Billingham – to work with the area’s process industries, which would specialise in carbon capture and storage (CCS).

Not only would the region’s heritage be built upon, but it could also see the investment of £1.5bn and the creation of hundreds, if not thousands, of jobs.

Last week, Shadow Energy Minister Greg Clark told The Northern Echo how he was impressed by the advances being made on Teesside in CCS, and how he believed it had the capability to become a world-leader, provided it was given investment to support its development.

Now, that seems to be more than a possibility.

There appears to be several factors to support Teesside being chosen as the CCS hub – its proximity to the North Sea and its oilfields, which Alistair Darling recommended for development in this week’s Budget; its existing strength and skills in the process industries, which is widely acknowledged as being the European hub of the sector; the cluster of existing companies, as well as those as far afield as Northumberland, that could benefit from the creation of a power station and its associated infrastructure.

Ashok Kumar, MP for Middlesbrough South and east Cleveland, said: “Just 170 years ago, the Pease family started the work of developing Port Darlington as a deep water port for shipping coal – a settlement that became Middlesbrough, a town that became the centre of the Teesside region,” he said.

“It is entirely appropriate that we should again be returning to coal, but this time in the context of the most advanced technologies of the 21st Century. I believe Teesside should grasp such an opportunity with both hands.”

Peter Walsh, energy manager for Renew, said: “It is important that we use and build upon the skills we have here in the UK, and in the North-East, to help create a new world-leading industry.

We have a substantial process industry here on Teesside, and we have the capabilities, the skills and the desire to advance CCS.”

Mr Clark, also Shadow Minister for Teesside, said that while the Conservatives had been pushing for such plans for a year, he welcomed the Government’s announcement.

But he added: “The Government must now move to make up for time already lost. The US, China and Germany have pulled ahead of the UK in this vital area due to the Government’s lack of support – we cannot afford any more policy delays.”

Ross Smith, head of policy and research at the North-East Chamber of Commerce, said: “Businesses in the North-East are developing great expertise in energy technologies, including CCS, so we are hugely excited by this announcement.

“Ed Miliband’s statement that Tees Valley is an ideal location for a CCS project is welcome recognition of this, and similar opportunities in Northumberland mean the region can become a significant centre for this technology. We must now do all we can in the North-East to ensure we seize this chance to stay at the forefront of the energy revolution.”

Tony Sarginson, external affairs specialist at manufacturers’ organisation EEF in the North-East, said it could yield massive opportunities.

“CCS does not just hold out the prospect of providing the UK with secure low-carbon energy supplies in the decades ahead, it has the potential to evolve into a major industry, generating wealth, exports and employment,” he said.