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Eon has scrapped plans to build a 150MW biomass plant at Portbury Dock due to the unfavourable regulatory and policy framework.
The German utility said it was not proceeding with the project, which was planned to be built at the Port of Bristol, because it no longer views the scheme as a “priority investment”.
A spokesperson said: “We continue to believe the UK could be a good market for investment in which sustainable biomass has an important part to play.”
In a statement, the spokesperson added: “It is now critical that we push ahead with the government’s Electricity Market Reform (EMR) so that we can deliver investment in the UK.”
Eon is continuing with its plans to develop the 30MW biomass plant at Blackburn Meadows, which is due to be completed next year.
The move comes after RWE Npower announced in July that it had shelved plans for its biomass project at Tilbury Power Station, citing difficult market conditions.
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