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150 Jobs Under Threat As Coal Plant Shuts

The Rugeley plant in Staffordshire has been hit by worsening market conditions for coal generation.

A surge in renewable energy production and cheap gas prices have effectively priced coal plants out of the market.

Rugeley is 75% owned by French power and gas group Engie with the remaining stake held by Japan's Mitusi & Co. It can produce 1,000 MW of energy.

Engie said in a statement: "Unfortunately market conditions for UK coal plant have deteriorated rapidly in recent years, as a result of a continued fall in power prices on the back of a commodity market decline, and increases in carbon costs.

"Under such conditions, there is no prospect of the power station recovering its future operating costs."

David Alcock, chief executive of Engie's energy infrastructure division in the UK, said: "It is with deep regret that we have had to make this decision at Rugeley. Our priority now is to support the employees and help them through this period.

Source: News.sky